T h e
m a g a z i n e
f o r
f r a n c h i s e e s VOL 10 ISSUE 04 may/june 2016
AUSTRALIA and NEW ZEALAND
own a slice of
la porchetta franchise sector
gives back to communities the power of franchising special feature
food & BEVERAGE franchising FINANCIAL & legal ADVICE
LATEST NEWS
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b us i n ess f r an c h i s e m ag az i n e aust r a l i a an d n e w z e a l an d
From the
Editor
BUSINESS FRANCHISE AUSTRALIA and new zealand
As the financial year comes to a close franchise owners should begin to take stock of how the last year has gone, and how they would like to move forward into the next financial year. One of our regular contributors, Kate Groom from Smart Franchise, has provided readers with a ‘Year End Accounting Review’ on page 26. Kate highlights the five financial aspects of business that you should discuss with your accountant as this time of year: Tax, Payroll, Risk, Reporting and Budget. In this issue of Business Franchise Australia and New Zealand we feature ‘Food and Beverage franchises’. This sector of franchising is reported to be worth $141.4 billion. Given the growing demand and ever-changing landscape within the food industry, the constant customer demand and availability of so many systems, which one do you go with? Hopefully we can help! Showcasing a range of franchise systems including mobile coffee, full-service restaurants, and stores, there’s something to suit everybody’s tastebuds. Also, in this issue we have the best advice;
covering areas such as financial, legal, and HR along with sound business strategies to help you achieve franchising success. The process of purchasing and running a franchise can be daunting and confusing. We hope that our Expert Advice writers, who are industry leaders with proven experience in the franchising sector, can help make this process easier for you. The Franchising & Business Opportunities Expo also returns to Perth, being held on 15 May at Crown Perth. Like its sister Expos in Sydney, Brisbane and Melbourne, the Perth event will offer visitors a forum to compare and research a diverse range of franchise opportunities, with investment levels from under $10,000 to more than $500,000.
Joanne Tuffy Editor
publisher: Colin Bradbury. colin@cgbpublishing.com EDITOR: Joanne Tuffy. editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au PRODUCTION: production@cgbpublishing.com.au
There will also be legal and financial advice to buy and set up your new business or franchise and the Franchise Council of Australia will be on hand to provide information and answer any franchising queries. So enjoy our expert advice articles and have a look at the numerous franchise systems profiled and featured throughout the magazine. And if you get to the Perth Franchising Expo, make sure you say hello to Business Franchise magazine, located on Stand 17.
VOLUME 10 ISSUE 4, may / june 2016
ACCOUNTS: Renee Gould. accounts@cgbpublishing.com.au DESIGN: Jejak Graphics (03) 8790 8006 COVER IMAGE: la porchetta TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au www.businessfranchiseaustralia.com.au
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The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
Business Franchise Australia and New Zealand 3
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Contents may / june 2016 On the Cover 10
Cover Story:
La Porchetta: Poised for Growth
12
31
Feature: Food & Beverage Franchising
Franchise Sector gives back to Local Communities
44
The Power of Franchising
Michael Paul, Franchise Council of Australia
FC Business Solutions
66
62
18
In Every Issue
Snapshot
6
What’s New!
16 V.I.P. Home Services
Announcements from the industry
14
FANZ News
Franchise Association of New Zealand
31
Feature Cover: Zambrero – Mexican with a Mission
36
38
88
Franchisor in Depth 48 Theobroma Food of the Gods 78 Appliance Tagging Services
Feature Cover Story: Zambrero: A Healthy, Humanitarian and Heartfelt Approach to Mexican Food Feature Editorial: Consumers hungry for more!
Franchise Association of New Zealand 2016 Conference
90
Behind the Headlines
Jason Gehrke, Franchise Advisory Centre
94
Professional Services Listings
96
Listings
98
A-Z Directory
4 Business Franchise Australia and New Zealand
48
18 Getting Employee Recognition Right
Jamie Pride, REFFIND
22 Social Media & Franchisees: We need you
Katherine Grace, Elemental Solutions
18
Expert Advice
also in this issue: 7-Eleven................................................................... 75, 98 Burger Urge. ................................................................. 98 Cashflow It........................................................................ 2
26 Your Year End Accounting Review
Clean Green Strata........................................... 29, 99
Crema Espresso........................................................ 99
54 Lease Considerations for Franchisees
Mark Sherry, Harmans Lawyers New Zealand
60 Pizza Hut Franchisees Unsuccessful
Raynia Theodore, MST Lawyers
62 Funding a Food & Beverage Franchise
Labrina Tsekouras, Westpac
66 What you need to know about HR for your
Franchise Barry Lehrer, DiffuzeHR
72 What should you expect from your Franchisor?
Professor Lorelle Frazer, Asia-Pacific Centre for Franchising
Excellence, Griffith University
Cutshop................................................................... 29, 99 Domino’s..................................................................47, 99 Dream Doors Australia........................................... 99 Dream Doors New Zealand. .............................100 Fasta Pasta..................................................................100 Fastway Couriers.......................................... IFC, 100 FC Business Solutions............................................ 15 First Class Capital. ......................................... 69, 101
38
Kate Groom, Smart Franchise
Fitness Enhancement Personal Training........................................................................... 101
GroutPro. ...................................................................... 101
84 Are Two Locations Better Than Just One?
Hairhouse Warehouse............................ 101, OBC
Home Sorted!............................................................ 101
David Banfield, The Interface Financial Group
86 Make the Most of your Conference Experience
Matthew Jonas, TopFire Media
Jejak Graphics. ......................................................... 107 Jim’s Antennas.......................................................... 102 Jim’s Pool Care......................................................... 102
Have your say 58 Up Close & Personal A Day in the Life of a Trainer Retail Food Group
Just Cuts....................................................................... 102 Rent with Style................................................. 25, 103 Scrooz............................................................................ 103 Smoothie Factory.................................................... 103 Snap-on Tools..................................................... 1, 104
Profiles
Snooze................................................................104, IBC
20 Chem-Dry Australia
Spray Pave Australia.............................................. 104
42 Steve Costi’s Famous Fish
The Interface Financial Group.......................... 105
70 Franchising Expo
Thermawood.............................................................. 105
26
52 Xpresso Mobile Café
Top Snap.............................................................. 17, 105
76 National Franchise Insurance Brokers
V.I.P. Home Services Fencing & Home Maintenance...............................................................106
82 Hypoxi
Vodafone.......................................................................106 Walker Wayland...........................................................81
what’snew! Indooroopilly welcomes a new Hairhouse Warehouse store A brand new Hairhouse Warehouse has opened its doors in Indooroopilly Shopping Centre. Run by multi-franchisee Nikki Robson and fellow member of the Hairhouse Warehouse family Vanessa Murphy, the store will boast an unrivalled product range and a wealth of expertise. With a successful Hairhouse Warehouse store in Ipswich under her belt, Nikki decided it was time to branch out and take on a new store,
bringing five years’ experience and a dedication to the brand. “I can’t wait to open up in such a premium location, Indooroopilly is the perfect place for a new venture,” she says. Vanessa has been a store manager at Hairhouse Warehouse Ipswich for three years, and along with Nikki has prior experience in sales, retail and styling. “Joining forces with Nikki to start a new store is a natural progression in my career at Hairhouse Warehouse, and our friendship and combined experience will lead to great things,” she says. “I am so grateful for the invaluable support that Head Office has provided along my journey,” Vanessa says. Both women bring their passion for hair and beauty to the table, and a love for customer service. “It’s fantastic to work with such a family friendly company that allows creativity and promotes a feel-good environment,” says Nikki. Hairhouse Warehouse is spreading the Power of Good Hair right across Australia, and is on the lookout for new franchisees to open more store across Australia. “You don’t need hairdressing experience to have a successful Hairhouse Warehouse store,” says Franchise Development Manager, Peter Fiasco. “You need some business acumen, a commitment to excellence, and a love of working with people.”
Hertz undertakes to refund consumers and make improvements The Australian Competition and Consumer Commission has accepted a court enforceable undertaking from Hertz Australia Pty Ltd (Hertz) following an ACCC investigation into Hertz’s vehicle damage charging processes. From 2013 to August 2015, Hertz represented to some of its customers that the vehicle that they had hired was damaged during their rental
period, when in fact the damage was pre-existing. Hertz incorrectly invoiced and charged these customers for the vehicle damage. Hertz also represented to some customers that the amount that they were charged to repair certain vehicle damage was Hertz’s actual repair cost, when in fact Hertz received repair discounts that it did not pass on to customers. Hertz has acknowledged that its conduct was likely to have contravened the Australian Consumer Law prohibitions on misleading or deceptive conduct and false or misleading representations, and has provided a court enforceable undertaking to refund affected consumers and to take other steps to address the ACCC’s concerns. “This case serves as a message to vehicle rental companies that they must have robust compliance procedures in place to ensure they do not contravene the Australian Consumer Law by incorrectly charging customers for damage they are not responsible for,” ACCC Deputy Chair Dr Michael Schaper said. “Vehicle rental companies must also ensure that they are transparent and accurate in communicating with their customers about the charges they are applying for vehicle rentals and repairs.” A copy of the undertaking is available on the ACCC website: Hertz Australia Pty Ltd
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NUFLOW TECHNOLOGIES ANNOUNCES NEW WA FRANCHISE Nuflow Technologies recently announced Western Australian business Drainscope has joined Australasia’s leading network of pipe repair and unblocking specialists. Nuflow Technologies director Ed Ahern said Drainscope had been identified as a family-owned and operated business providing quality service to customers in Bunbury, WA, and was therefore an ideal fit to join the growing international franchise. “I am very pleased to welcome Drainscope to the Nuflow team and look forward to working together as the company continues to develop new products and techniques that collectively enhance our capacity to provide customers with cutting-edge pipe repair and drainage solutions,” Mr Ahern said. Drainscope owner/operator Neil O’Brien is a fully licensed plumber with more than 30 years of experience across plumbing and draining contracting, design, drafting, consultation and education. “Neil’s expertise, experience and enthusiasm for his trade make him a highly valued addition to Nuflow Technologies’ exclusive network of specialists,” Mr Ahern said.
Founded in 2004, Nuflow Technologies has established its place as Australasia’s leading pipe repair and unblocking specialists, providing cost-effective solutions to fix cracked, leaking and corroded pipes without digging.
Mr O’Brien said joining Nuflow Technologies would propel his business to new growth through access to a range of techniques and products including Nuflow’s innovative Blueline range.
Nuflow Technologies is committed to building an exclusive network of highly skilled franchisees, with comprehensive specialised training provided for members at regular workshops and annual conferences, along with ongoing support and collaboration to solve operational issues as they arise.
“I was very impressed with the technology offered by Nuflow and believe it is an innovative solution to many drainage problems,” Mr O’Brien said.
With 32 franchisees in Australia and 6 in New Zealand, Nuflow Technologies is on track to meet its goals for international expansion in 2016.
AFL greats Bell and Jakovich officially open Quest West Perth AFL greats Peter Bell and Glen Jakovich recently joined the Lord Mayor of Perth, The Right Honourable Lisa M. Scaffidi to officially open the newest addition to the Quest Apartment Hotels network, Quest West Perth at 54 Kings Park Road. Quest Chief Operating Officer, Scott McAlister, was delighted to officially open Quest West Perth, expressing his confidence in the leading accommodation provider’s ongoing success in Australia’s largest
state, adding a further 395 extra rooms to Perth’s hotel supply in 2016. “Quest has big plans for WA, with Quest West Perth the first of four properties to open in the state this year. Along with QLD and NSW, WA will remain one of our key markets for growth over the next decade and we’re thrilled to open Quest West Perth,” said Mr McAlister. “There is a staggering amount of development and investment in the local area at the moment, including the $1.2 billion Perth Children’s Hospital scheduled to open in late 2016. The Metro Area Express (MAX) Light Rail project, due for completion in 2022, will significantly improve public transport to West Perth and demonstrates the State Government’s confidence in the strength of the local economy,” he concluded. Quest West Perth Franchisee, Lloyd McAuley was pleased to officially open the property and share the experience with the Lord Mayor and the local business community.
L – R: Lloyd McAuley, Peter Bell, Lord Mayor Lisa M. Scaffidi, Glen Jakovich and Scott McAlister
“Quest West Perth is ideally located in one of the city’s most soughtafter business districts and we have experienced a fantastic response from Perth’s business community since opening in January. I have been overwhelmed by the support of the Quest Apartment Hotels network and the local community during this time,” Mr McAuley said.
Business Franchise Australia and New Zealand 7
what’snew! New ‘Head of Customer Management’ for Fastway Couriers Fastway Couriers is pleased to welcome Gina d’Almeida as its new Head of Customer Management, effective immediately. Joining the team with over 27 years of experience, Gina brings a wealth of experience to the role. Gina now oversees all elements of the management of Fastway Couriers’ extensive national customer base, developing the friendly courier experts’ strong customer relationships. Prior to joining Fastway Couriers, Gina held various sales and account management roles at Sinclair Wilde, Tailors Mark, Mondo Search and ING Direct. At Fastway Couriers, Gina manages the customer management team, ensuring that all national clients receive the best and most suitable services to meet their exacting requirements. Gina’s appointment follows a time of rapid growth at Fastway Couriers, with several national clients added
Check out our new look website! The Business Franchise Australia and New Zealand website brings together prospective franchisees, franchisors, associated businesses and experts from within the franchising community. Incorporating a significant re-design, the new website makes it easier to access the information you’re looking for. Featuring a selection of the current franchise systems available, and comprehensive, categorised directory of franchises and service providers, we’re sure you’ll agree it’s vibrant and user friendly. Featuring the latest news plus specialised advice from experts within the franchising industry, this really is your one-stop-shop for all things franchising. See the difference for yourself at www.businessfranchiseaustralia.com.au
8 Business Franchise Australia and New Zealand
to its portfolio this year, including leading online department store, TheNile.com.au. “I’m thrilled to be joining the Fastway Couriers team. I’m looking forward to playing my part in taking the brand from strength to strength. Fastway Couriers is a fascinating business and I can bring a lot to the role as the company continues to expand,” says Gina. Richard Thame, CEO of Fastway Couriers, said he’s delighted that Gina has joined the team. “Gina brings an incredible amount of experience to the team across sales and account management, commercial relationship development and operational processes. She’s an excellent addition to the team and is well equipped to guide our new and existing national customers to the best courier solutions to meet their needs.”
Franchising Expo debuts in Perth After kicking off 2016 with an exciting show in Sydney in March, the Franchising & Business Opportunities Expo is going from strength to strength with a brand new Perth show this month. Exhibition Manager Fiona Stacey says the new Perth Franchising & Business Opportunities Expo will be a boutique event for one day only on 15 May, held at Crown Perth. “The time is right and the team are very excited about working with exhibitors and the Franchise Council of Australia (FCA) to make the Perth Franchising & Business
Opportunities Expo a professional showcase event,” Stacey says. “Crown is a stunning venue that offers easy access, free parking and onsite accommodation. Visitors will still be able to see all the franchising and small business options, talk to the names behind the brands and attend business seminars.” Exhibitors ready to meet franchisees at the show in WA include Bakers Delight, Jan Pro Cleaning Systems, Aussie, Hairhouse Warehouse, Snap-on Tools, Just Cuts, VIP Home Services, Experimac and Minuteman.
Like its sister Expos in Sydney, Brisbane and Melbourne, the Perth event will offer visitors a forum to compare and research a diverse range of franchise opportunities, with investment levels from under $10,000 to more than $500,000. There will also be legal and financial advice to buy and set up your new business or franchise and the Franchise Council of Australia (FCA) will be on hand to provide information and answer any franchising queries. Information and visitor pre-registration is available at www.franchisingexpo.com.au.
New Franchising Board chair appointed – Billson aims to boost buoyant sector The $144 billion annual turnover franchise sector is set for a new era with the appointment of former Federal Cabinet Minister Bruce Billson to the Board of the Franchise Council of Australia (FCA) as Executive Chair. The FCA’s mission is to support the growth and success of franchising and the appointment of Mr Billson to lead the FCA Board is aimed at further boosting vitality in the sector. Mr Billson is keen to continue to support entrepreneurial women and men in the Australian economy in his post-political life and believes the FCA Board role is an excellent fit for his skills, experiences and ambition to continue to ‘energise enterprise’. He has long been supportive of franchising including introducing reforms aimed at maintaining a mutually supportive relationship between franchisors and franchisees. “Franchising is a wonderful model for entrepreneurship where people can be in their own business but not be on their own for this commercial journey,” Mr Billson said. “The experience and know-how made available by franchise systems and the drive and entrepreneurship of franchisees combined to make franchising a very resilient business model during and post-GFC. “With improved business conditions, now is the time to take Australia’s leading role in franchising to the next level and grow the number of first-class systems, investors and livelihoods made possible by franchising. “I am excited to be able to work with the FCA Board, executive team
and membership to build on the positive momentum in franchising by continuing to nurture confidence in this model of commerce, the capacity of the sector and our commitment to quality to ensure more people see franchising as a pathway to a more prosperous future.” In addition to Mr Billson’s Board appointment, the Franchise Council will shortly be appointing a new CEO with the Board keen to reset, renew and reenergise the value, contribution and representation of the FCA.
Business Franchise Australia and New Zealand 9
c ov er sto ry: La P o r c h e t ta
La Porchetta Poised for Growth “One of the most important supports for new La Porchetta franchisees is the company’s rigorous demographic analysis that identifies hot-spots for new restaurants,” said Mr Nania, who is the nephew of Felice Nania, the very first co-owner of La Porchetta restaurant in Carlton more than thirty years ago. “This, together with La Porchetta’s strong systems of support for franchisees and the community spirit within the company, make La Porchetta a safe franchisee investment,” says Mr. Nania. “Support for every aspect of the business, from staff recruitment through to details like dishwashing and cash management, help minimise risk and maximise success.” “The level of success we’re seeing in newlyopened La Porchetta restaurants can only be achieved with collaboration,” says La Porchetta CEO Sara Pantaleo. “As a franchise, we put a lot of resources, staff and systems in place to effectively support every franchisee in managing and growing their businesses, with minimised risks.”
With more than three decades of growth in Australia and New Zealand, the La Porchetta franchise shows no sign of slowing. The company’s rigorous market research, extensive systems of franchisee support and commitment to core values are seeing new franchisees leverage off the restaurant’s success.
When business partners Eric Nania, Enzo Santarpino and Eric Lionti met, all were La Porchetta employees with real insight into the business. Experiencing the restaurant’s growing popularity from the inside, the three have now joined forces and opened the largest restaurant in Doreen, a north-east suburb of Melbourne. Mr Nania has owned several successful La Porchetta businesses — the first being in the Watergardens shopping centre, north-west of Melbourne. He and his partners believe their prospects for success are bolstered by the company’s close and careful analysis of many factors in choosing a restaurant site, including population growth, demographics, retail clustering, local brand-interest and driver or pedestrian exposure.
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These include coaching teams, proven marketing support and business advice, easy technology support, support from a community of franchisees and a flat-fee system that gives restaurateurs a key advantage to rapidly grow their businesses. La Porchetta supports all aspects of business, including menus right through to operational systems, service and ordering. Ms Pantaleo said the company’s core values of family culture, passion for quality Italian food and investing in relationships with franchisees and customers attract a certain kind of franchisee. “Our franchisees really believe in the brand. They like the security of a known and well-loved brand, as well as an engaged support office, easy technologies and robust support systems. “With the current growth in the hospitality sector generally, there has never been a better time to invest in a La Porchetta restaurant if you’re committed to great service and longterm success in hospitality. “New franchisees choose to invest in the brand for many reasons, including comprehensive training and ongoing support,”
said Ms Pantaleo. “It’s a proven, profitable brand. We also give extensive marketing support and advice, run regular franchisee meetings and networking channels, and we have a deep commitment to innovation. “And our willingness to change, modernise and innovate has seen La Porchetta grow from strength to strength, but the restaurants continue to be the hubs of family, love and great Italian food that distinguished the very first La Porchetta. To this day, these values account for La Porchetta’s popularity.” Indeed, the three Doreen La Porchetta partners were so taken by the company’s values and systems that they took the leap from employees to owners. Mr Nania was there on the day the first La Porchetta opened more than three decades ago, where he lovingly prepared and served the delicious, traditional Italian pizzas he learned to make in his family’s kitchen as a boy. He met business partner Enzo Santarpino when they both worked at La Porchetta South Yarra — Mr Nania as manager and Mr Santarpino as head chef. Their friendship grew, so when the opportunity arose to purchase La Porchetta at Watergardens, Mr Nania jumped at it, with Mr Santarpino on board as head chef. The pair’s business prospects strengthened with the addition of Eric Lionti, Mr Nania’s cousin, as a partner. Like Mr Nania, Mr Lionti was involved in La Porchetta from an early age, managing the Greensborough restaurant in the mid-1990s and going on to own or part-own a number of other La Porchetta restaurants. For these three franchisee partners, owning a La Porchetta is a lifestyle choice. “When you have a proven system with good policies and procedures and that’s backed by great training, you can step away and enjoy a worklife balance,” said Mr Nania. “Each partner can step away and know that procedures are in place for the other partner. And when you have that kind of balance, you come back
“When you have a proven system with good policies and procedures and that’s backed by great training, you can step away and enjoy a work-life balance.” to work refreshed and give even more to the business.” Now focused on their new business, the partners are serving Doreen families alongside social, business and sporting groups. The restaurant seats 250 people, with plans for a specialised function room upstairs in the coming months. “There has not been a restaurant of this size in this area before, making it the perfect location for family dinners, events with friends and gatherings with large groups,” Mr Nania explains. “We knew we had a safe bet on this restaurant because of the rigour behind the brand, its expert analyses and its operational systems.” Yet there were other reasons. With a lifelong passion for fresh, well-prepared Italian food, Mr Nania says a successful La Porchetta restaurateur cares for staff and customers, insists on a ‘spotless’ kitchen and restaurant environment, and pays great attention to detail in the ordering, preparation and serving of ingredients and meals. And of course, “the pizza dough has to be exactly right: the texture, the temperature, the fresh ingredients… and getting it to rise perfectly.” To make menu choices and ordering priorities easy, each La Porchetta restaurant is supported by the company’s streamlined systems (such as digital menu boards and online ordering) and Support Office staff. “Our team has ears to the ground when it comes to current food trends,” says Ms Pantaleo. “We’re also informed by the latest industry research and expert advice, and to this end, La Porchetta has some great innovations to its menu that customers love. This combined with the localised specials board give our guests great variety. “This means new franchisees can offer
contemporary menus and ordering systems that give their restaurants a leading edge while enhancing their Italian authenticity.” The new restaurant at Doreen offers La Porchetta’s extensive menu including pasta, pizza, risotto, a large range of salads, fish and chicken dishes and grilled and slow cooked meats. The partners are also aware of the increasing need to cater for food allergies and intolerances, and are more than happy to prepare gluten-free and other low-allergenic meals. This helps customers feel connected,” says Mr Nania. “I like customers to smell the freshlymade sauces as they come in the door; it helps create the homely feel of an Italian kitchen, and puts them in a good frame of mind to enjoy their meal,” Mr Nania says. To customers, La Porchetta is a trusted brand known for quality, value and warm service. The franchise has worked hard to retain its existing customer base while it builds on its strong market position in a growth sector. We become part of the local community wherever our restaurants are situated. Ms Pantaleo says the company’s current franchisee recruitment drive invites people who are committed to the company’s values. “We began as a family-run, familyoriented restaurant and even though we have streamlined corporate structures in place, we have stayed true to that family culture for more than three decades. Our businesses revolve around a warm family heart and we refuse to compromise on our core values.” For more information contact: T: 03 9460 6700 E: franchising@laporchetta.com.au W: www.laporchetta.com.au
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f r an c h i s e c o u n c i l o f aust r a l i a
Franchise sector gives back to local communities The vital contribution of franchising to local communities, local employment and local economies cannot be underestimated. Indeed, one of the great strengths of the franchise business model is that while the franchisor provides support to franchisees through systems, training, processes, brand recognition and marketing, the franchisees themselves are still local small business owners, and are very much involved at a
grassroots level in their communities. The franchise sector as a whole is a strong supporter of charitable and community organisations and it’s always pleasing to see members of the Franchise Council of Australia extending a helping hand. Gloria Jeans Coffees is one example that, earlier this year, made a $5000 donation to support the victims of the devastating Waroona and district fires in Western Australia. For many franchise systems, charitable contributions and support are an ingrained part of the corporate culture. This is the case, for example, with OPSM, the winner of the Franchisor Social Responsibility Award at the 2015 MYOB FCA Excellence in Franchising Awards. OPSM have supported OneSight, a
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non-profit organisation providing sustainable access to vision care for communities in need since 1988. The FCA is pleased to recognise their efforts in this regard. The Franchise Council of Australia’s annual Excellence in Franchising Awards celebrates excellence in a broad range of areas with community and social responsibility being a core theme that runs through many of the award categories. These awards recognise the vital role franchises can and do play in the local communities in which they operate, providing franchisees, franchise head office staff and franchise systems with the opportunity to showcase their achievements in the franchise sector. The FCA is proud that franchising plays a
“The franchise sector as a whole is a strong supporter of charitable and community organisations and it’s always pleasing to see members of the Franchise Council of Australia extending a helping hand.” Michael Paul | Chairman | Franchise Council of Australia
part in so many community initiatives and, in particular, would like to take this opportunity to celebrate the franchisees who give up their time or expertise to contribute to their local community and make it a better place to live. As an association, we believe that these are important stories to tell.
community contributions, and support of local charities. This included the team spearheading a community-wide ‘Home is Where the Heart Is’ fundraiser, including the sold-out charity gala ball that raised more than $15,000 for the Heart Foundation.
Indeed, at a franchisee level the Excellence in Franchising Awards recognises Franchisee Community Contribution and Responsibility, a category that, in 2015, was won by Alexandra Lincoln, John Bleakley and Kim Taylor of PRDnationwide Real Estate, Toowoomba City (QLD).
The 2016 Regional Excellence in Franchising Awards is now in full swing, and once again we are seeing some fantastic community contributions by franchisees. This has included Ryan Kirkham of Bakers Delight, Kawana & Maroochydore, who took out the Qld/NT Franchisee Community Contribution and Responsibility Award this February.
These PRDnationwide Real Estate franchisees were recognised for their outstanding local
As a local business owner on Queensland’s Sunshine Coast, Ryan believes in the
importance of putting back into the community and supports a range of charity groups and initiatives. This includes the support of Wishlist, a Sunshine Coast charity that raises money for the improvement of local public health services, and Life Church where Ryan makes weekly bread donations that go to help homeless people and struggling families within the community. This is just a snapshot of some of the great work franchisees are doing in their communities and I look forward to hearing more stories as the Regional Excellence in Franchising Awards program makes its way across Australia over the coming months. www.franchise.org.au
Business Franchise Australia and New Zealand 13
fanz
f r an c h i s e asso c i at i o n o f n e w z e a l an d
NEWS
The 22nd Annual Westpac New Zealand Franchise Awards are now open for Expressions of Interest. The Westpac New Zealand Franchise Awards recognise franchising’s highest performers and each year attract more and more interest with ever increasing standard of applications.
Winning an award is recognition that the recipient operates at the highest level in that discipline within the industry and as a result many opportunities will present themselves including reaping the benefits of the media coverage; enhanced brand recognition and credibility; increased marketing opportunities and the knowledge that your system, campaign or business offering has been independently evaluated against other operators in the industry.
The awards recognise excellence across a number of categories from Franchisors, Franchisees, Field Management, Industry Service Providers, Franchise Community participation and Media campaigns.
2015 Supreme Winner ‘Paramount Services’ have found that through entering and being the recipient of many awards over the years that it leads to a very positive impact on all stakeholders.
Daniel Cloete, National Manager Franchise – Westpac says, “This is an outstanding opportunity for franchises and service providers to recognise their own hard work and achievements. Through the judging process they will come away with valuable insights on how to improve their business and will be well positioned to take advantage of the growing economic climate.”
“The process itself engages our entire team. It enables us all to review our business processes but the real buzz is the pride our people have in showcasing their business. Winning the FANZ awards provides another element of credibility when recruiting new franchisees and pitching for new business. Even existing customers celebrate the success of our achievement, and rightfully so. They are part of our success,” Paul Brown, General Manager, Paramount Services Ltd.
Whilst winning a category or being the Supreme winner is the ultimate goal, there is much to be gained by forwarding an entry and participating in the process. It is a great discipline for any business to take time out to stand back from the business, review the many aspects of the operation and analyse its effectiveness. If your franchise hasn’t entered before, take the plunge now and set your franchise apart!
The Franchise Association works closely with the New Zealand Business Excellence Foundation (NZBEF). The awards are assessed and judged by independent evaluators of the NZBEF. Businesses are measured against the Baldridge methodology to ensure that franchising in New Zealand is achieving at a Business Excellence level. In past years many
14 Business Franchise Australia and New Zealand
of our franchise winners have gone on to enter the New Zealand Business Awards with great success. The Gala Awards dinner will be held on Saturday 12th November and will celebrate the great talent and hard work of the franchising community of New Zealand. An occasion not to be missed. To find out more about entering the awards go to our events page on www.franchiseassociation.org.nz
Franchise System Setup
Franchisee Training HR Support & Helpdesk Online Operations Manuals Network Development Strategy Executive Recruitment Operational Team Support Digital Marketing Strategy www.fcbs.com.au contact@fcbs.com.au (03) 9533 0028
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s n a ps h ot: V.I.P. h o m e s er v i c es
FLEXIBILITY & FREEDOM Although experienced business owners prior to buying their V.I.P. Home Services cleaning franchise in February 2015, Wayne Lyons and Pauline Walker still enjoy the flexibility and freedom of running their own business. Wanting to go into business together and after seeing an advertisement on TV, Wayne (owner of a cartage contracting business for over 20 years) and Pauline (owner in an insurance brokerage for more than 15 years) were keen to learn more about V.I.P. Home Services. After the initial contact was made, Wayne and Pauline met with one of the V.I.P. Sales Managers based in WA. After leaving that meeting impressed with what they heard, they spent the day ‘on-the-road’ with a franchisee of 2 years’ experience, who was experiencing continuous growth and very happy with the V.I.P. experience. Wayne and Pauline then made the easy decision to buy into the franchise as they realised it could offer them the lifestyle they were looking for. Pauline says, “By buying our own franchise we can work around the family and working with V.I.P. affords us the flexibility we require. We currently work four days a week, which allows us a long weekend every week, it’s certainly met our expectations.” With Head Office and help always available, Wayne and Pauline have experienced a smooth transition from business owner to franchise owner. Wayne says, “Although we are part of a successful and established franchise, we still very much feel like business owners. This is our small business and we run it that way. Although Head Office and regional support and services are there if needed, flexibility and
freedom is given to run your business.” Pauline adds, “It’s very much a family feel franchise. The V.I.P. support network is really good. The franchisees help each other and are always on hand for advice if you’re ever stuck. Assistance is always there if you need it, it’s up to you.” Working in East Perth, Wayne and Pauline are home cleaning franchisees offering home and office cleaning, as well as spring cleans and move in/exit cleaning. They regularly experience the support offered by other franchisees. “We don’t clean carpets but we know another V.I.P. franchisee that does so we recommend them to the customer and arrange for the franchisee to contact the client direct. We also get jobs given to us that come through as recommendations from other franchisees, and we in turn help other franchisees by passing on work that we can’t fit into our schedule,” says Wayne. Over the last 35 years, V.I.P. Home Services have been committed to helping their franchisees succeed, offering the backup and support that you don’t have when running
“The V.I.P. support network is really good. The franchisees help each other and are always on hand for advice if you’re ever stuck.” your own small business. Wayne and Pauline both agree, “The thing we enjoy about owning our own V.I.P. franchise is the people contact, job satisfaction - especially in regard to home cleaning - the variety of work, freedom and being in control, all while being part of a professional and supportive network.” If, like Wayne and Pauline, you are interested in finding out more about running your own franchise business or would like to spend some time with an experienced franchisee, simply contact V.I.P. today. P: 13 26 13 W: www.viphomeservices.com.au
16 Business Franchise Australia and New Zealand
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Getting employee recognition right “Leaders should identify the difference between pointless busy work and the small tasks that make a genuine difference, and recognise employees accordingly.” Jamie Pride | Managing Director and Co-founder | REFFIND
Most managers and business owners know it’s important to tell employees when they’ve done a good job. Shining a spotlight on excellence can motivate employees to work even harder and more productively, and the knockon effects can see other team members step up their game. Recognising hard work following a huge lunch rush, or for going the extra mile to satisfy a customer will likely boost morale and encourage employees to repeat such behaviour. According to research*, employees who enjoy their jobs and feel valued are more likely to lead healthy, happy lives outside of work, while those who feel disgruntled and unappreciated are more likely to suffer from health issues such as heart disease. This can result in absenteeism that can adversely affect a business’s costs and competitiveness. It’s important to understand when and how
to recognise great work. Simply thanking the employee face-to-face can be an effective way to boost that person’s morale but sharing the recognition throughout the entire team sets the culture, and shows other employees what types of behaviour are valued. In terms of when to praise, the general rule of thumb is that it is better to be lavish than lean. A culture of appreciation boosts morale, so it’s important to be constantly on the lookout for genuine reasons to praise people. Leaders should identify the difference between pointless busy work and the small tasks that make a genuine difference, and recognise employees accordingly. Authentic thanks go a lot further towards boosting morale than empty thanks for minor tasks.
Be specific When thanking someone, it’s better to be specific and precise. A general thank you is fine but, if you can call out specific actions and link them back to how it has helped the team or the business as a whole, the praise is more likely to be remembered and the person is more likely to continue doing that action, or even redouble their efforts.
Be consistent Another key aspect of positive recognition is consistency. Some people are very quiet about the great work they do, while others are born
18 Business Franchise Australia and New Zealand
self-promotors. By recognising both types of people when appropriate, you’re sending the message that good work gets noticed no matter what. This lets employees know that being recognised at work has nothing to do with ‘politics’; it’s a genuine appreciation of hard work. It also means that employees feel they can trust managers to be fair; if an action is praised one week and ignored the next, employees can be disappointed.
Recognise effort It is important to remember that recognising employees shouldn’t only be about success. If employees are putting in extra effort then success will come eventually; it’s the effort that should be rewarded. For example, an unhappy customer may not be willing to be appeased, no matter how hard your employee tries to make them happy. Thanking employees for doing their best and maintaining composure in a stressful situation shows them that you understand the value of what they tried to do, even if the customer ultimately refused to be satisfied. The next time they face a similar situation, they will be inclined to behave in the same calm, conciliatory way, and the next customer may recommend your business to friends and mention it on social media because of the outstanding customer service.
Keep it timely Don’t wait to tell your employees they’ve done a great job. Where possible, it’s more effective to offer praise on the spot while the achievement is still fresh, rather than much later. This is because the longer you wait to praise someone, the more they’ll wonder if anyone has noticed their efforts. Even effusive praise at a later time may not assuage their feelings of disappointment.
Consider personalities A key aspect of providing appropriate employee recognition is to remember that every person feels differently about attention. Some thrive on positive attention while others prefer to blend into the background. It’s important to take their preferences into consideration when offering recognition, and communicate your appreciation in a way that will be most meaningful to the recipient.
“In terms of when to praise, the general rule of thumb is that it is better to be lavish than lean. A culture of appreciation boosts morale, so it’s important to be constantly on the lookout for genuine reasons to praise people.”
This is where an employee recognition solution can deliver value. It lets you either send a private message or post it in a company-wide forum for everyone to see. Ideally, it also lets recognition flow in all directions, so managers can praise employees, leaders can praise teams, and peers can praise each other. Peer-to-peer praise can be particularly effective because, often, people go the extra mile for their colleagues rather than their bosses. To know their hard work was appreciated by the people who benefitted most can be particularly rewarding for these people. It also provides peers a chance to thank their colleague for making their own jobs easier, which encourages camaraderie and teamwork. Using a technology-based system also makes it easier to ensure no employee is overlooked or left out. It’s a constant reminder to managers and team leaders to be on the lookout for praiseworthy behaviour. It can also serve as a repository for guidelines on what types of behaviour should be recognised and rewarded, aiding in the quest for consistency. Ultimately, providing positive reinforcement to employees, managers, and peers should be a pleasurable task rather than a burden. By implementing technology to make recognition simpler, faster, and more effective, businesses can more effectively encourage desired behaviour. By adding gamification, you can gain deeper engagement from workers who then strive to consistently display those desired behaviours. And by connecting with employees on their own terms, you can develop a culture of inclusiveness, positivity, and respect. Jamie Pride is Managing Director and CoFounder of REFFIND. Jamie has more than 20 years’ experience in senior leadership positions for international, high-growth technology vendors, systems integrators, and digital media organisations. For more information contact: T: 1300 600 956 W: www.reffind.com *www.apa.org/monitor/2010/12/morale.aspx
Business Franchise Australia and New Zealand 19
profile : Ch em-Dry Aust r a l i a
pr o fi l e : c h em -d ry aust r a l i a
CHEM-DRY: LEADING CHANGE
Already the leader in the Australian carpet cleaning industry, Chem-Dry have set into action a business growth plan to build an even better experience for franchise partners, and build a stronger support network for the future. Director Lachlan Mitchell, son of visionary founders Bruce and Elva Mitchell, explains how, even after 30 years’ experience in the Australian franchise sector, Chem-Dry are always looking forward; innovating and leading change within the carpet cleaning industry. “Making a decision to bring in the first senior manager from outside the Mitchell family brings a fresh approach, new ideas and a new drive to the organisation. This ensures we continue to deliver success into the future.” New CEO Alan Biddle brings to ChemDry new strategies, learnt from many years within a successful coffee franchise, which he built up into a large franchise network from conception. Lachlan continues, “We’ve seen a lot of changes within franchising over the years,
from a handful of franchise opportunities in the 1980s, to the thousand plus today. Throughout that period of change - over the last 30 years - Chem-Dry have remained number one in our industry; we just felt it was time to bring someone fresh in, with fresh ideas that could help us take it to a new level.”
Moving forward With 140 franchisees at the moment, many of whom are long-term and have been with the franchise since the beginning, Chem-Dry have made changes to their royalty structure that allows a franchisee the opportunity to be more of a manager and work on the business, rather than in the business. Exposing ChemDry to a more diverse range of franchisees will not detract from the family focus of the brand, it will however allow a wider range of managerial and entrepreneurial franchisees to build up their business and trade city wide. “We have a number of different pricing structures that saves franchisees money on their royalties. With our new offering, for example in Sydney and Melbourne, we have six franchise areas. Traditionally a franchisee would come in and purchase one of those areas, and as they get bigger, buy into a second area and so on. What we are doing now is offering one price, for all the territories in the area. This gives franchisees a big saving,” says Lachlan.
20 Business Franchise Australia and New Zealand
Joining the Chem-Dry system This turnkey franchise includes a fully branded Chem-Dry vehicle as well as all the equipment and cleaning solutions you need to get started in your own carpet cleaning business. Entry costs also include franchisee induction training at the National Office, a five year franchise agreement with additional 5 year options, your franchise territory, and a marketing pack which includes your uniforms, flyers, business cards, and even your very own website. On the road with the franchisees, the Franchisee Development Managers provide the best possible support to franchise partners with a focus on one on one development and business mentoring. Alongside this, franchisees also attend state meetings, with a franchise partner convention planned within Australia in 2016, alongside international Chem-Dry conventions also held annually. With this dedicated support network, onroad support and training plus innovative cleaning solutions and state of the art cleaning equipment, now is the perfect time to join this market leader. For more information contact Alan Biddle on: T: 0422 392 393 E: alanbiddle@chemdry.com W: www.chemdry.com.au
Want to make a clean break? Build your future with Chem-Dry Chem-Dry is the world’s largest carpet cleaning franchise, and has been helping Australian’s realise their dream of business ownership since 1986.
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If you’re ready to make a clean break with your own Chem-Dry franchise, simply fill out the information form on our website, or call our franchise business info line on 1800 243 637. Business Franchise Australia and New Zealand 21
e x pert a dv i c e
Social Media and Franchisees – We Need You!
With a background in franchising spanning 19 years, I have seen an astounding amount of changes in how our businesses market their services.
In 1997, when I took my first full-time job answering the phone at the Jim’s Group, the power of drive-by signage (namely trailers) was so great that many customers often thought they had seen us on TV – even though Jim’s had never been on the telly at that point. That vehicle signage is still a massively powerful brand asset, but it’s also definitely competing more to be seen amongst billboards, shopfronts and thousands of other sign written vehicles.
22 Business Franchise Australia and New Zealand
In 1997 a small ad in the local paper was enough to get inquiries coming in, and dropping a DL flyer in local letterboxes got a reasonable response. There was no such thing as email, mobile phones or websites (ok, now I feel old) and very little opportunity to target a particular demographic other than by where they live. In 2016, I now run a company called Elemental Solutions, and we specialise in helping franchises and small business with
local and low-cost marketing. It’s all about digital now. Digital marketing is cheap(ish), fast, easy to change or try multiple ads at once, and you can often reach people by a whole range of criteria including age, interests and family status. Ads and flyers still have their place, but can often not deliver at the same cost per lead, and there’s a whole other world at the fingertips of businesses to reach people.
Digital Becomes Personal Being online is being one with Google. In the past, a website was an ‘extended business card for your business, and those with the sexiest website often won the client. But lucky for us, Google loves connecting people with the best, most local small business that can help the customer get what they need. Over the years they have geared their setup to support businesses that offer genuinely helpful information, are local and look after their clients. Franchises are inherently local, small and family-owned businesses. They just have the added backing of a franchisor. In the two businesses I own and the ones I work with, I’m finding our marketing is increasingly less about throwing large budgets at media and more about harnessing the power of word of mouth and the local community. But that this word of mouth is massively amplified by the power of digital and social media. Searching for a business online is no longer a one way street – customers won’t just look at your website and decide if they like you. They’ll be immediately presented with the actual experiences of past clients via online reviews, testimonials, social media and even website forums dedicated to this task. People are gathering in tribes via social media and forums, by location, interests, passions, what food they eat, their kids, their pets and where they shop (Kmart Addicts is a real page, there’s a tribe of over 40,000 right there). And so it’s so much more than a sexy website now. What’s happening in the real world is being captured and amplified via the internet, and reaching new people who for whatever reason (they’re considering using your business, for instance) care about those happenings. And this is where the franchisee comes in.
“Franchises are inherently local, small and familyowned businesses. They just have the added backing of a franchisor.” Katherine Grace | Director | elemental Solutions
What You Leave to the Franchisor The franchisor is in charge of building and protecting your brand, which is a very important job because that brand makes your business more valuable and makes customers want to trust you. In modern times they’re also in charge of any marketing material that is universal across your franchise group, such as the website, social media accounts, artwork for brochures and stationery, etc. They might even work with other national companies to forge alliances that help you cross network to each other’s clients. The one that is the most demanding of all these important tasks is managing social media. Most franchisors will now need to have someone dedicated to setting up social media accounts, getting followers, posting regularly and answering queries promptly (social media demands an almost instant response). They’ll also need to monitor reviews left or posts by the public to make sure that they don’t damage your reputation, or if they do that there is a fast rectification and reply so the online world knows you care. Because this is all best in the hands of the franchisor, there’s a misconception out there that the franchisees don’t need to do anything with regards to digital marketing for their business. This is definitely not the case. Your franchisor is (probably already) screaming for help with social media, and the franchisee is the only one that can come to the rescue.
its flaws, but if you don’t focus on and spruik its benefits…. customers won’t come. They’ll be wise to your cynicism. Once you love the brand and want it to do well, then you can start to help your team. The most important job of franchisees in relation to social media is to service customers so well they want to tell others. Raving Fans by Kenneth Blanchard is an excellent book to explain how to deliver just that one per cent more. In this day and age they won’t just tell a friend, they’ll leave a glowing review for you online where hundreds of people they don’t even know will see it. You should actually say to clients who are happy “Hey thanks for the feedback, I’d love it if you left a review for us on Google or (insert name of your industry’s most popular review site)”. This will help your brand as a whole but will also directly impact new customers into your individual store. Your franchisor’s social media team will notice too, and you’ll be getting pats on the back from them very soon. The second most important thing you can do – that your franchisor really, really needs you to do – is provide content. Lots of content. Lots of valuable, interesting, engaging and relevant content.
How Franchisees Contribute to Social Media
To gain followers and keep them on board, social media needs to give these followers information that helps them in their daily lives, without constantly pushing your product or service. Franchisees are 200 per cent the best people to provide this as they have the insight and opportunity to get this stuff together every single day.
Firstly, be a team player. You’ve joined a franchise system which has team principles at its centre. Love your brand. Be proud of it. If you or your staff wear your uniform with disdain or embarrassment, you are damaging the very thing that makes your business succeed (or not). Your chosen system may have
To give you some examples, I’ve looked at what are the most popular types of content in both social media and online newsletters for my clients, some of whom are national brands with 250,000 subscribers (making it really easy to see slight changes in interaction depending on the type of content).
Business Franchise Australia and New Zealand 23
e x pert a dv i c e
“Be a team player. You’ve joined a franchise system which has team principles at its centre. Love your brand. Be proud of it.”
Here are some ideas of what types of things most people would find valuable, and most franchisors would be extremely grateful for; • Home hints & tips – anything related to your business that gives away enough to be of value but not all your trade secrets. How to clean something, fix something, repurpose something, care for something etc. • Advice – design advice, family advice, health advice, etc. • Recipes (people literally cannot get enough of these). • Five minute things – 5 min workout, brain training, meditation, etc. • Translating stuff to the layperson – explaining how the financial system works, what’s going on with your computer, the new spam laws – anything you know that they don’t.
• ‘Good news stories’ or testimonials from clients. • Photos of work that you’ve done that is awesome or interesting. • Photos of interesting places you’re working. • Pictures and news about community or charity events that your business is a part of. • Stories and pictures of your team, especially helping clients. • Industry news – repost an article from any bodies or suppliers that support your industry. See how easy it would be for franchisees to flood their hardworking head offices with awesome content? To provide this stuff to your franchisor, send them an email with some words and at least one photo (a video is 1000x better). Keep it coming and your own personal business will be promoted constantly to thousands of online followers, so you will win. And this winning content will get more and more people engaged with your brand, which
24 Business Franchise Australia and New Zealand
means your franchise group will win. Which also means you win. Formerly in management at the Jim’s Group, Katherine has over 19 years’ experience in franchising. She has worked with many brands, been a successful ActionCOACHfranchisee (#14 in the world) and was runner-up Franchise Woman of the Year in 2010. Elemental Solutions offers marketing plans and affordable ongoing coaching to achieve your marketing goals. It is best suited to small businesses and franchisees who need help with the ideas but would be happy to do some of the work themselves or get their team involved, rather than facing a hefty bill to an advertising agency. P: 0400 865 277 E: Katherine@elementalsolutions.com.au W: www.elementalsolutions.com.au
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Your year end accounting review “Is a ‘no frills’ accounting service best for you, or might you be better off with a higher level of service?” Kate Groom | Co-founder | Smart Franchise
The owner of a small business usually wears many hats, but it’s important to know when to call in the experts.
DIY or outsourced?
Accounting is one area where you can benefit from outside expertise to save time, save money and improve revenue. Financial year end is a good time to review this aspect of your business. Here are some things for you to consider.
A quick look at how a larger business typically approaches accounting can highlight the benefits of calling on a specialist rather than a DIY approach to bookwork and accounting.
We find that many franchise owners do much of their own accounting work. And, whilst it’s true that modern accounting software can make it possible for you to do the basic bookkeeping, it’s important to know when to call on a specialist for help and advice.
Larger businesses employ accounting staff because it’s efficient, reduces the risk of errors,
26 Business Franchise Australia and New Zealand
and leaves other staff to get on with what they are best skilled at. In these businesses, the company accountant is responsible for record keeping and financial reporting. Meanwhile, the various managers take care of operations, marketing, sales and so on. You’ll usually find the senior management or board meet monthly to review the results and make decisions. Managers refer to financial reports but they don’t prepare them! However, in smaller business we often see the owner involved in the nuts and bolts of accounting, just as they are involved in other
“Whilst it’s true that modern accounting software can make it possible for you to do the basic bookkeeping, it’s important to know when to call on a specialist for help and advice.” It’s the same with your franchise accountant. As the business owner, it’s helpful to think through whether a basic accounting service is best for you, or if you need or want something more. A ‘no frills’ approach might be all you need if you’re good with the money side of things and your business and tax affairs are straightforward. You may simply want your accountant to calculate the amount of tax due on your business profit and personal income, complete the necessary reconciliations and compliance requirements, lodge your tax return and let you know how to pay the tax you owe. In this case, your focus may be to keep the cost as low as is practical, while being confident the job is being done in a professional way. However, a minimum level of service isn’t best for everyone and all situations. If you have a more complicated or larger business it might be beneficial to seek out a higher level of expertise and service from your accountant. You will pay more for this expertise than for a basic tax return but the idea is that your business receives a greater benefit. For instance, your accountant may have specialist skills in franchising, financial analysis, tax planning and advice that will help you save your costs or time, and even make more money. aspects of the business. But it’s not always a good use of time for the owner to be highly involved in the bookkeeping. It’s often better to have an external accountant who can act like the CFO would in a larger business. If you’re a franchise owner, you’ll almost certainly find that delegating some responsibility for the financial aspects of business means you can focus on vital areas such as on building sales, training and mentoring staff and managing the detail of business operations.
The question then becomes how much of the accounting work to handover to your external accountant?
If it’s been some time since you thought about this aspect of your business, you might like to have a chat with your accountant about what services they can provide to help your business in the year ahead.
No frills or top of the range?
What to talk about
In many areas of our life we make choices about whether to buy a ‘no frills’ product or service or to go with a higher level of quality or service. Sometimes ‘no frills’ is best - but not always. Depending on your situation, ‘no frills’, middle of the road or top of the range may be best.
Here are five financial aspects of business you might like to chat about with your accountant.
1
Tax
Tax planning is the most basic area your external accountant will help with. This starts with working out how much tax
Business Franchise Australia and New Zealand 27
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is due on your business profit and personal income. Beyond this, they should be able to identify ways to legally minimise the amount of tax you pay, and make the most of tax concessions. It helps if you’re able to meet your accountant for a tax planning session before the end of the financial year so you have time to take advantage of any opportunities.
2
Payroll
Not only can it be time consuming to administer your payroll, but there’s the risk of penalties if you get wage rates or payroll calculations wrong. However, technology is making things easier for small business, with several cost effective payroll solutions and Apps now on the market. The start of the new financial year is a great time to implement software that simplifies rostering and wages calculations and includes inbuilt Award rate compliance. Ask your accountant if they can help you with software recommendations and set up.
“From time to time you will have big expenses to meet; items such as tax payments, refurbishment costs, new equipment or a vehicle. An annual review of upcoming expenses will help you anticipate and plan for these by including them in your budget.”
3
Risk
Insurance is an expense that you should review each year to make sure it’s appropriate for your current situation. It’s definitely an area to ask your accountant about. Many have a connection with a local insurance broker, some even have an adviser who is part of their practice.
4
Reporting
You’re no doubt used to your accountant preparing your tax return and perhaps your Business Activity Statement, but have you discussed other reports they could provide? One of the most useful reports is a summary of revenue, costs and profit over the last two years. You can ask your accountant to prepare this from the information they have on file, then take a look and see what insights it helps you gain about your business.
28 Business Franchise Australia and New Zealand
5
Budget
From time to time you will have big expenses to meet; items such as tax payments, refurbishment costs, new equipment or a vehicle. An annual review of upcoming expenses will help you anticipate and plan for these by including them in your budget. But if budgets and spreadsheets are not your thing, why not ask your accountant to start work on this for you now? Kate Groom is co-founder of Smart Franchise and the Franchise Accountants Network, together with her business partner, Peter Knight. You can find them online at: www.getfranchiseready.com www.weeklybusinesstips.com.au
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Contents On the Cover: Zambrero – Mexican with a Mission 34 What’s New! Announcements from the industry 36 Cover story Zambrero: A Healthy, Humanitarian and Heartfelt Approach to Mexican Food 38 Feature Editorial Consumers hungry for more! 42 Profile Steve Costi’s Famous Fish 44 The Power of Franchising FC Business Solutions 47 Domino’s 48 Franchisor in Depth Theobroma Food of the Gods
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52 Profile Xpresso Mobile Café 54 Lease Considerations for Franchisees
Mark Sherry, Harmans Lawyers New Zealand
57 La Porchetta 58 Have Your Say Retail Food Group
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60 Pizza Hut Franchisees Unsuccessful Raynia Theodore, MST Lawyers
62 Funding a Food & Beverage Franchise
Labrina Tsekouras, Westpac
A regular of Business Franchise Magazine, our special supplement in franchising showcases a different industry each issue To share your specific expert industry advice or to feature your franchise in the next issue, please contact: Kathleen Lennox, Sales & Marketing Manager Phone: 03 9787 8077 Email: kathleen@cgbpublishing.com.au
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what’snew! Soul Origin Franchisees Finalists in FCA Awards
“Healthy fast food” brand Soul Origin is proud to announce it has finalists in three categories of The FCA NSW Regional Awards, which has progressed to the Finalists stage of judging. The finalists are: Sherwin Djamil – Multi-Unit Franchisee of the Year Sherwin Djamil – Franchisee Community Responsibility & Contribution Harry Yiannikas – Field Manager of the Year Organised by the Franchise Council of Australia, which is the peak body representing franchisees, franchisors, and service providers to the sector, the Excellence in Franchising Awards recognise and reward those who are in the top of their field. The awards also provide a platform for companies and individuals to showcase the remarkable work they are doing in the franchising sector. “This is a great achievement for our young brand,” says Soul Origin General Manager Chris Mavris. “These awards are a terrific opportunity to foster excellence among our franchisees by allowing them to shine on a national stage. We knew we had some of the best franchisees in the business, and it is exciting to have that officially recognised.”
Small format marks big change for Oporto Simply known as Oporto Surry Hills, the brand has launched their first new ‘pequino’ (Portuguese for small) format store this week. This is the first of many to be rolled out in inner city locations across the country, and marks a big step forward in the modernisation of the brand. Craig Tozer, Oporto CEO “This is an extremely exciting time for Oporto. This design is fresh and modern, and is exactly where we need to be. To bring the kitchen front and centre for customers to view was critical in the design as we want to highlight our use of fresh produce and cooking methods. This new small format paves the way for future restaurants to open in inner city locations where real estate is limited. Exciting times indeed.” With the use of real and natural, authentic, environmentally friendly materials the impressively modern space was designed by Zone Design and built by ONYX. With only 50 square metres to work with, the Design and Construction team along with Operations have cleverly integrated the fully functioning open kitchen with grill, oven and fryers along with refrigeration, counter space and seating for 10 people. Anthony Shina, General Manager Design & Construction for Oporto was integral in bringing the project to life “Working with such a
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small space had its challenges however with an amazing team we have achieved all we set out to do. Fresh modern design with an open kitchen to showcase freshly prepared food. The result is a distinctive shift from the traditional QSR fast food design to a more modern, warm, premium and urban environment.” The menu has also been streamlined with a specific focus on what Oporto is most well-known for; delicious, full flavour, flame grilled Portuguese Chickens, as well as the famous Bondi Burgers; Embrulhos; Saladeiras and Jalepeno Poppers to name a few.
AUSTRALIAN RETAILERS AWARDED FOR INNOVATION ON THE GLOBAL STAGE elected Australian member of this prestigious alliance of consultancy companies, and this year nominated over 10 home-grown innovators of which 2 have made it into the publication and won Innovation Awards alongside the likes of Ikea, Whole Foods Brooklyn and Rebecca Minkoff.
Retail Innovations is a world renowned book released annually by Ebeltoft Group, containing the most innovative and exciting retailers from all over the world that year. Hundreds of retailers are nominated by consultancy businesses in more than 25 mature and emerging retail markets across the globe, which then go through a scrutinising judging process before the finalists make the publication. Retail advisors, Retail Doctor Group are the
Out of hundreds of innovative retail case studies submitted from around the world, Australian retailers Sneakerboy and food franchise SumoSalad have been awarded the title of Australian Innovators of the Year by Ebeltoft Group consultants. “A massive congratulations to the Sneakerboy and SumoSalad teams” said Brian Walker, CEO of Retail Doctor Group. “The integration of technology and mobility, as well as a unique physical retail experience, redefines what it is to be truly omni-channel. Sneakerboy is a homegrown Australian retail innovation, showcasing a new generation of
thinking and redefining retail. “SumoSalad’s Green Label store experience is not only innovative but creates a feeling of trust around the brand. With the fresh produce grown and displayed in-store, consumers are confident of its freshness and quality and, therefore, willing to invest in a healthier alternative to other fastfood chains. By building these foundations of trust, the retailer is creating sustainable brand loyalty, which can be built upon as the concept spreads across the whole business. Both retailers are well deserving winners of this award” These award winners also sit as front-runners in the three key trend categories, identified by Ebeltoft members that have rocked the retail world in the past 12 months: • Passion for food • Low inventory • Second-hand/no waste
REFFIND launches Educate with Neil Perry’s Burger Project Employee experience technology company, REFFIND Limited (ASX:RFN), recently announced the launch of its Educate solution. REFFIND Educate, part of the REFFIND platform, enables organisations to deliver short-form video information to employees via their smartphones, providing a fast, simple way to educate and communicate with staff and new employees. Australian celebrity chef Neil Perry’s Burger Project was the first client to roll-out the Educate component of the REFFIND platform, leveraging it to train and communicate with the company’s employees. REFFIND Educate has provided Burger Project with a replacement for time-consuming and costly traditional forms of training. It lets the organisation send short form videos to train its employees on basic food-handling skills and working up to the higher skills of grilling, customer service, training, and supervising. Neil Perry AM, Burger Project founder and Rockpool executive chef, said, “Regular training is an important factor in maintaining our high standards and helps the organisation keep its brand pledge of providing house-made food with top-notch ingredients that ensures freshness and genuine quality. “We were looking for a solution that was modern and new, which would appeal to the demographic of our staff and be readily accessible to them. With REFFIND Educate, we can make sure new employees know how to perform tasks according to the policies, processes, and systems that have been put in place to maintain our high quality
standards. This is an especially valuable tool as Burger Project works on its goal to expand from two to over 50 outlets within the next few years.” With REFFIND Educate, Burger Project staff can now conduct all initial training on their smartphones. A follow-up survey ensures they understand the content and, if they ever need a refresher, the training content can be quickly resent. At the same time, information about new products or processes can be easily communicated to existing employees across the entire organisation, regardless of working hours.
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FEATURE : foo d & b e v er ag e
c ov er sto ry: Z a m b r er o
ZAMBRERO:
A healthy, humanitarian and heartfelt approach to Mexican food Dr Sam Prince opened the first Zambrero restaurant in 2005 with one mission: combine his desire to help the underprivileged and fuel his entrepreneurial vision. From day one, the Plate 4 Plate initiative was built into the company’s business model. The concept was simple: for every burrito or bowl purchased at Zambrero, a plate of food is donated to someone less fortunate in the developing world.
Fast forward a decade, to December 2015. In the outer Perth suburb of Midland, Zambrero is celebrating its 100th restaurant opening. It’s also the 21st restaurant for the state and the 5th Zambrero drive thru in Australia. Today, Dr Sam Prince is headquartered in Sydney, alongside 40 Support Office staff, and 68 Franchise Partners around Australia, who all have their sights on opening 50 restaurants before the year’s end. On digital counters in Zambrero restaurants all over Australia, the number of meals donated through Plate 4 Plate has clicked to over 8 million. Despite the numbers, for Sam Prince and the Zambrero Group, now more than ever quality is still the focus. Like its fresh and healthy Mexican fare, the team’s recipe to success is made up of a few simple but high quality ingredients that sets the franchise apart from the rest.
“Establishing relationships with Stop Hunger Now and Foodbank Australia, both hunger relief organisations, helps Zambrero achieve their mission while focusing on developing and delivering quality Mexican food.” 36 Business Franchise Australia and New Zealand
Aid organisation? Mexican fast food restaurant? Zambrero exists at the intersection of fast food franchise and humanitarian organisation. It sells fresh, healthy, flavoursome Mexican for a reason: to help eradicate world hunger. Plate 4 Plate is Zambrero’s reason for being. It’s corporate social responsibility taken to a new level. In 2015, the company extended its humanitarian efforts to combat poverty in our own backyard. To do this, Zambrero created a range of retail products that includes superfood muesli bars and black rice packets with the purpose of alleviating the growing hunger problem in Australia. With every retail product sold, a meal is donated to an Australian in need. Already, 10,000 meals have been served to families around the country. At the core of Zambrero is Dr Sam Prince’s belief that an aid organisation should be run with the same rigour as business. He has deeply and carefully formed his philosophies about how to most effectively make his mark in the world. “Before you even begin to help someone, you firstly need to have a clear vision as to what comprises a basic human right and a basic human responsibility,” says Dr Prince. To do this the team needed to partner with organisations working in the field who shared their common goal to end world hunger.
fully realise the impact our brand will have in the Sydney market,” says Crowe. “One of our advantages is the flexibility of our restaurants as we can occupy all kinds of spaces. The fact that our food comes from a central kitchen eliminates the need for us to have things like grease traps, so we can be versatile in the spaces we look to rent,” he said. Development Agents like Crowe and McCormack take a hands-on role not only running their own franchises but also providing daily support to their Franchise Partners. Establishing relationships with Stop Hunger Now and Foodbank Australia, both hunger relief organisations, helps Zambrero achieve their mission while focusing on developing and delivering quality Mexican food. Stop Hunger Now packs and distributes food to countries where many do not have access to adequate nutrition, primarily through school feeding programs.
A model that works For Zambrero, simple processes both structurally and operationally are key to its continued growth. The decision to employ a Development Agent model into the company’s structure was what facilitated the brand’s restaurant boom. Last year, the company experienced its highest jump in restaurant numbers, doubling its number from 50 to 100 in under 18 months. Daryl McCormack, previously the CEO of one of Australia’s largest retail franchises and now Zambrero’s Victorian Development Agent, met Sam Prince at the beginning of this new chapter for the brand. With McCormack’s strong background in franchising, Prince and his team were keen to consult with him on how to expand Zambrero around Australia. “I was happy to sit down and give them a couple of hours of my time,” says McCormack of a breakfast meeting he agreed to, now three years ago.
“Six hours later we were still deep in discussion. I’d met with many young entrepreneurs before but what really struck me is how different this brand was to any other. Sure, we are all here to make profits but when that is linked to a wholehearted desire to do good and help people, that really drew me in,” he said. With Daryl now on side, the Development Agent model was deployed in each state and over the course of the next three years, Zambrero would see promising growth in Victorian metro areas, and rapid growth in the Queensland and Western Australian regional markets. In the last 12 months, Queensland has opened 10 new restaurants, with 9 confirmed to open in 2016, taking the state’s total to 47.
Breaking new ground Having had a largely regional development focus, Zambrero this year shifts its sights to metro areas, NSW being one of key interest. Jonathan Crowe is tasked with the job of developing the Zambrero brand in metro NSW. Crowe, a former property and real estate development manager, knows the Sydney market will have its challenges but believes the strength of the brand’s core values, coupled with its high quality food offering and on-trend aesthetic will be received well by Sydney-siders. “We’re the largest Mexican restaurant franchise in Australia, but we’re still yet to
On any given day Zambrero’s agents are providing support to their Franchise Partners by negotiating rental contracts, working to reduce their COGS and maximise profitability in their restaurant and even consulting with tradespeople on restaurant fit outs. “We become the support network between head office and the Franchise Partner and this is crucial to ensuring we open high quality restaurants every time as well as provide the ongoing support they need to improve their ongoing operations,” says McCormack. Having development agents in the field allows every opportunity to be taken with a people first approach. “When you streamline and get everything working operationally you have more time to focus on finding the right people who are more than ready to become advocates for our brand,” says Crowe. He believes Zambreo has got the recipe to success worked out: “We’ve got all the right ingredients: a model that works, fresh and healthy food, outstanding people, and a supportive and inspiring culture that permeates the entire organisation, we can only do great things from here.” For more information contact: T: 1300-ZAMBRERO (1300-92627376) E: franchise@zambrero.com W: www.zambrero.com
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“We’re the largest Mexican restaurant franchise in Australia, but we’re still yet to fully realise the impact our brand will have in the Sydney market.”
FEATURE : foo d & b e v er ag e
Consumers hungry for more! Did you know that Australians spend billions of dollars on food and beverages every year? Or that Australians drink over one billion cups of coffee in cafés, restaurants and take away outlets? Then what are you waiting for? Join the world of food franchising!
The early days Until the early 1970’s, franchising was virtually an unknown concept in Australia. That quickly changed with the arrival of the ‘golden arches’ along with two all-beef patties, forever changing the suburban landscape. KFC and Pizza Hut joined McDonald’s, and so began the story of franchising in Australia. Since these early days, franchising has grown in leaps and bounds to include almost every industry and covers almost every product and service imaginable. The food sector of franchising continues to thrive and grow, with food franchises representing a large proportion of the franchising industry. According to the 2014 Franchising Australia survey completed by Griffith University’s Asia-Pacific Centre for Franchising Excellence, eighteen percent of all franchise systems focus on accommodation and food, which includes fast food and coffee shops, with only retail franchises higher (27 per cent).
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Our love of food
Put simply, we love our food, and in terms of franchising the options have never been more prolific. From the early days of burgers and pizzas, we are now being served up more options than ever, and with growing concerns over our increasing waistlines healthy options have become popular in recent times. In addition, more and more people are raising concerns of gluten intolerance, lactose intolerance, nut allergies, high cholesterol, diabetes… the list goes on! As food retailers, being able to cater for all kinds of food intolerances and preferences is becoming increasingly important. Responding to consumer desires is vital for sustainability in the food industry. Steve Costi’s Famous Fish have recognised there was a niche available for a quality seafood based franchise. The number one take-away food item sold by independent stores, Australia’s appetite for seafood has increased by 27 per cent per capita since 1997 and is increasingly seen as the appropriate ‘fast food’ by governments, health agencies and consumers alike. La Porchetta has over 70 restaurants in Australia and New Zealand, and are the market leaders in cooking quality Italian food with fresh ingredients, with no signs of slowing. With the first La Porchetta Restaurant open in Melbourne’s Italian hub in 1985, they have been part of the Australian food landscape for 30 years. Ethical and humanitarian causes also appeal to the consumer and one of the leaders of the pack is Zambrero. Combined with his desire for healthy Mexican food, Dr Sam Prince wanted to help the underprivileged.
FEATURE : foo d & b e v er ag e The concept was simple: for every burrito or bowl purchased at Zambrero, a plate of food is donated to someone less fortunate in the developing world. Fast forward a decade, and the 100th restaurant opening was recently celebrated in the outer Perth suburb of Midland.
Café culture
“We love our food, and in terms of franchising the options have never been more prolific. From the early days of burgers and pizzas, we are now being served up more options than ever.”
Coffee culture has swept Australia in a big way. For most people, a trip to the shops cannot pass without stopping for a coffee, a long day at work wouldn’t be the same without the familiar take away coffee cup on our desk, and a long drive simply wouldn’t be possible without a mandatory coffee break! The coffee market has grown considerably in Australia in the last few years, and has proved to be a booming market for many franchisors. The ever expanding list of franchise opportunities for those interested in a coffee franchise provides a wide variety of options for potential franchisees. Xpresso Mobile Café was one of the first companies in Australia to install coffee machines in vans, taking premium Di Bella Coffee to thirsty consumers. Xpresso Mobile Café offers franchisees the opportunity to share in the success of an established brand with a proven track record throughout Australia, growing at a rate of 30 per cent each year. Alternatively, there are a wide range of coffee shop franchise opportunities where coffee is served in stylish, relaxed and friendly surroundings, most also providing a takeaway option for customers. If you’ve
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“Australia and New Zealand have always been proud of their multicultural heritage and our cravings for food from all over the world is reflective of this, including Indian, Thai, Spanish, Italian, Chinese, Middle Eastern and many more.” the FSC (Food Standards Code), TGA (Therapeutic Goods Association) and the Health Authority. Then you need to consider what the ACCC rules are and of course if you get into franchising there is also the Franchising Code of Conduct. These are just a few of the governmental and industry bodies that have specific requirements when it comes to the food industry. “This can all be very daunting and confusing, particularly when many of these bodies do not give you a clear answer on a question regarding the rules. But business always has its challenges. You need to just keep going, becoming a sponge and soaking up all the information you can possibly absorb. Information is key, because making a mistake in regards to any of the above Codes and Associations can not only cause massive fines, but can be terrible for the public relations of your business.”
Choices, Choices! Given the growing and changing food industry, the customer demand and availability of so many systems to choose from, which one do you go with? always wanted to run your own café, then perhaps these options could be suited to you.
Global cravings Australia and New Zealand have always been proud of their multi-cultural heritage and our cravings for food from all over the world is reflective of this, including Indian, Thai, Spanish, Italian, Chinese, Middle Eastern and many more. Potential franchisees can choose from a variety of retail food options covering all kinds of cuisines. And whilst premium quality international food offerings often come at a higher price point, successful franchise owners will tell you that people are happy to pay a premium for a top quality product that is made exactly how they want it. Of course, if we go back to where franchising first began in Australia, the fast food sector
of franchising remains as strong as ever. With fast food outlets providing tasty, quick, and cheap food in all locations, from highways to malls and on the high street, the appeal for consumers remains high, and with many now providing healthy alternatives these businesses remain highly competitive in the industry.
Rules and regulations As with any industry it’s important to understand the rules and regulations associated with the business, and this is extremely important when working in food retail. Janine Allis, Founder of Boost Juice and Managing Director of Retail Zoo, gave this advice for Business Franchise readers thinking of getting into the food industry: “First of all you need to fully understand what it means to be in food, particularly healthy food. You need to be aware of
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First decide that you are interested in the food retail business. Then get together with your family and make sure they are interested in the food business – this is important not to overlook – as you will be spending a great deal of time in your new business. You must then get with your franchise banker and put together a realistic sum of money you can afford to put into this new venture. This will most likely weed out some systems quite quickly – as the larger, more well-known food names come with a hefty price tag. They are strong, tried and tested and have proven success stories – but you must truly be able to afford to buy into this. Once you have an amount in mind, you can begin to shop around. Are you looking for a particular location? Are you looking for a particular type of food or drink? Are you looking for a premised based business, or a mobile unit?
FEATURE : foo d & b e v er ag e “As food retailers, being able to cater for all kinds of food intolerances and preferences is becoming increasingly important. Responding to consumer desires is vital for sustainability in the food industry.” You will be able to narrow down your search, but don’t rush. If you get to your short list, it is time to take the focus away from the product and direct all your attention to the franchise system and the franchisor.
Get to know your franchisor The franchisor holds the key. The management system, the operational procedures, the leasing agreements, the contracts, and the fees have been generated by the franchisor. Check the franchisors background – is it solid? Meet with him or her. Do they seem to be a person of integrity? Do they answer all of your questions openly and honestly? Do they invite you to do your own investigations into the company? Are they eager for you to talk to existing franchisees? If at any point you feel pushed, rushed, bullied or even ignored by the franchisor – it is time to consider walking away. Hopefully though, the franchisor will be professional, honest and open.
location to another? Do the employees seem happy? Do the customers seem happy? By doing as much research as you can you can gain the knowledge to know if you are making the right choice at the right time. So if making coffees, flipping burgers, or if carefully crafting international cuisine whets your appetite for the exciting world of food franchising, you will most likely find that you have started on a fantastic path to success. Bon Appetite!
The next step is to meet with several existing franchisees. While it’s fine to have all the manuals in place and have the franchisor tell you how great and successful the business may be, it’s the franchisees that have the real story. Visit them in their place of business, ask questions, and ask their employees if they enjoy working there. One of the great things about researching food franchises is that you can simply drop in and eat. Be a random customer, visit several locations. Is the food good? Is the service good? Is it consistent from one
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FEATURE : foo d & b e v er ag e
pr o fi l e : St e v e C ost i ’s Fa m o us F i s h
SET SAIL FOR A NEW BEGINNING Steve Costi’s Famous Fish mission is to always supply phenomenal seafood, give customers an amazing experience, and create strong exciting seafood diners while giving generously to others.
for seafood has increased by 27 per cent per capita since 1997 and is increasingly seen as the appropriate ‘fast food’ by governments, health agencies and consumers alike. Steve Costi’s Famous Fish have recognised that of the 30,000+ take-away outlets generating in excess of $7 billion in retail sales, there are no multi-unit, integrated seafood operations and there was a niche available for a quality seafood based dine-in and take-away franchise.
Committed to this mission, Steve Costi along with business partners Jon Sully and Vaughn McGuiness are looking for community minded, entrepreneurial and fun business owners to join the growing team.
Committed to attracting an exceptional calibre of franchisees, Famous Fish want everybody involved in the business to have fun, enjoy what they do and look for opportunities to give back to their local community. Living and breathing these principles within the organisation, Famous Fish are looking for franchise partners that embody these values.
AN AUSTRALIAN FAVOURITE Continuing a family tradition tracing back to 1958 and inspired by his father’s passion and success in the seafood industry, Steve Costi got into business for himself and soon the Costi family fish shops started to open throughout the NSW region. While still in his early twenties, Steve began to build what would become a recognisable retail brand and forerunner to the Steve Costi’s Famous Fish franchise. Opening up his second store at David Jones, Market Street Food Hall in Sydney, Steve discovered an entrepreneurial flair and passion for offering the freshest, most affordable seafood available.
THE FUTURE OF SEAFOOD The number one take-away food item sold by independent stores, Australia’s appetite
BECOMING A FRANCHISEE
After an application is submitted and reviewed, it’s time to meet face to face with the team. With support from Famous Fish during every step of the application process, potential franchisees are asked to complete extensive due diligence and work with an accountant or financial adviser to help with the development of their business plan.
SUPPORT & ASSISTANCE WITH EVERY STEP Once the Franchise Agreement is signed, a Store Operations Specialist is assigned whose mission it is to help grow the franchise store. In addition to Famous Fish offering site selection, lease and store layout assistance, the Store Operations Specialist will walk
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“Committed to attracting an exceptional calibre of franchisees, Famous Fish want everybody involved in the business to have fun and enjoy what they do.” you through the details of getting your store open, as well as spending the first full week of opening in-store. Alongside a five week training program incorporating classroom and practical training, assistance is also given with hiring and training staff, preopening marketing and ongoing operational support.
A LOCAL BUSINESS The Famous Fish promise is to always maintain the spirit and heart of a locallyowned small business, valuing the people within the communities by being good neighbours, treating people well and doing business with integrity. Supporting local community causes such as charities, sporting clubs and disadvantaged people, Famous Fish want to give back to the communities that support them. If you want to be your own boss, have more control of your time and love quality seafood, contact Steve Costi’s Famous Fish now for more information. T: 03 5975 8614 E: franchising@famousfish.com.au W: www.famousfish.com.au
Steve Costi and his family have been in the seafood business since 1958, and after years of success have decided to franchise the Famous Fish business. Coupled with the strength of the Costi Brand, our franchisees will benefit from our comprehensive training, business, marketing and head office support. Set sail in one of Australia’s most successful retail sectors!
SEAFOOD REMAINS THE #1 TAKE-AWAY food item sold by independent take-aways in Australia.
Serving authentic, original and accessible seafood, and delivering an efficient, manageable franchise business.
Join our franchise family! We take an instant liking to committed, hardworking individuals who have a dream of working for themselves and strong ideals about quality, because people that hang onto those ideals always make it! For more information regarding the Famous Fish Franchise opportunity, please contact Sal El-Houli:
P: 0425 786584 E: franchising@famousfish.com.au W: www.famousfish.com.au Business Franchise Australia and New Zealand 43
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e x per t a dv i c e
The power of franchising
So you have bought a coffee shop franchise, the first few months were amazing. Plenty of customers, hitting all of your KPIs, living the dream! But a café just opened up across the street and all of your customers are disappearing. Their coffee isn’t better than yours, and they don’t even sell cakes!
Where did you go wrong? What can you do to get them back? You need help! That’s the exact reason why you purchased a franchise – you didn’t want to do it alone. You have bought into a franchise system that has set up a business model that actually works. They have a team of trained support professionals who understand your business and why things sometimes go wrong. These trained professionals have worked diligently to prepare franchisees for situations like this. Some franchise systems differ as to the chain of command but let’s start at the beginning. The franchisee always has a constant point of contact, the Area Manager – let’s call her Sally. You need to call Sally right now and tell her about the situation that you are in. Sally should have access to detailed store performance figures because of the
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transparency in the POS System. This transparency will assist Sally to diagnose your pain point – whether it’s a lack of sales in morning trade, not up-selling or maybe your staff don’t know the popular alternatives to coffee. Sally will be able to generate reports that will most likely confirm your earlier suspicions. But that’s not all Sally does, she has also set a meeting with you at 10am on Tuesday to further investigate the situation. But how did you let your business get in this position in the first place? During your franchise induction, the franchisor trained you and your staff on all of the tools and resources that you could leverage to operate a successful business. One month down the track and the training was still fresh in your mind and being utilised in
FEATURE : foo d & b e v er ag e the business – but six months later, you had forgotten about those tools that made life easy. Now sales have dropped dramatically, and you are crying for help! The power of franchising is in the tools and resources. This is not the first time that a business’s top or bottom line has been impacted by a competitor – and most definitely not the last time either. Thankfully the franchise support is once again there for this occasion; and just quietly between the two of us – they are here to help and want to see you succeed. It’s 10am, Sally arrives. She immediately notices that you are not taking advantage of the local area marketing campaign all of the other franchisees are currently promoting. She also notices that the sign on the door
“A franchise system offers much more than a couple of logos and brand recognition, it’s an entire system that works seamlessly for many others.” says closed – but the shop has been open since 6am! Of course the café across the road is buzzing, there’s a line of people waiting for their mediocre coffee and here we are without a single customer waiting because our customers can’t see our amazing offers… Sally calls Brian, the support office marketing genius to come down to the café with the latest marketing material to help with promotion. Brian’s job is to get you to engage with the local area - you may have heard the terms LAE or LAM before, specifically in your induction training. As a local business, it’s vital that the community actually know that:
• you are open and ready for business; • what you do; and • the special offers you have that customers can’t get anywhere else. Brian takes out the marketing posters, publishes a couple of tech savvy Facebook and Instagram posts and the customers start rolling in. Now of course, customers won’t immediately start flowing in – but you get the idea. By using the marketing material that the franchisor has already created you give yourself the greatest chance of success. There’s a reason why the campaigns are created, and it’s because they tend to work. Brian’s work is done here, so he goes back
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e x per t a dv i c e
to the office to work on your next exciting campaign. Sally has been observing your staff for the past half hour and notices an alarming trend. Your staff don’t know what they’re selling. Haley, a young university student who has an exam this afternoon wants something strong – but she doesn’t know what to order, she’s not a coffee drinker. The staff member should be able to recommend two or three options for strong beverages; perhaps a double shot of espresso, or maybe even an iced drink. But instead, your staff member goes back into his shell and waits as confused Haley starts to walk away. The sale has been lost. This customer engagement, especially in a café is a critical part of the sales process. Having a clear understanding of each of the products that are on offer makes sure that John with his skim milk iced caramel macchiato is able to order exactly what he wants without having to go across the road to your arch rival. Information about your offerings are not only two feet above everyone’s heads on the menu, but they are also a major part of your operations manual. Product knowledge, keeping up to date with all of the latest promotions, and having a clear understanding of the pricing structure is something that each employee needs to have.
Sally sends you an email with a link (or PDF if your franchisor is old school) to the relevant sections of the operations manual that you need to look over. She also guides you through how you could educate your staff about the product offers. You are already paying for the support services of Sally, Brian and anyone else in the support office, so you need to make sure that you are utilising them as much as you need to. If you’re not yet part of a franchise system, and it’s something that you are considering, think about this - you may know someone who can design a logo, develop a website or even train staff if you’re lucky, but do you have someone that will do all of these things on call for you? Do you have someone who will prepare a 600 page operations manual that outlines every tiny aspect of your business? The simple answer is no! A franchise system offers much more than a couple of logos and brand recognition, it’s an entire system that works seamlessly for many others. Sally and the team back at head office know what they are doing, they’ve seen it all before. Make sure to ask for help, and trust what they have to say. FC Business Solutions is an integrated consultancy firm specialising in developing, growing and marketing franchise systems. A professional team
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provides expert service exclusively to the franchise community, in system development, marketing and communications, business health checks, and business operations. They also offer solutions in documentation, training, and human resources. Contact: P: 03 9533 0028 E: contact@fcbs.com.au W: www.fcbs.com.au Here are a few of things that a field coach should be doing to help you and your business: • conducting regular meetings with a clear agenda, resulting in action items; • conducting regular audits to identify areas for improvement; • utilising the franchisor’s benchmarks to review your key financial indicators against other franchises within the group; • providing guidance on training for you and your team; • keeping you up to date with all of the latest marketing campaigns; • encouraging you to engage with other members of the franchise system; • sharing with you the success others have seen with new initiatives.
Undisputed leaders in online ordering. Australia and NZ's first and most advanced mobile ordering apps.
Ongoing training and support for franchisees and their teams. State of the art digital store management tools in the hands of every franchisee.
Innovative digital marketing with millions of customers assessable via email and social media.
FEATURE : food & b e v erage
fr a n c h i s o r i n d ep t h : theo b ro m a F ood of the gods
JOIN THE CHOCOLATE REVOLUTION From the moment a customer walks into a Theobroma Food of the Gods (Theobroma) store, they are immersed into a world of boutique products and experience the heavenly atmosphere of the warm and calming ambience. Known for their boutique products, store designs and innovative menus, Theobroma have taken that to the next level with the recent launch of their new design concept. Franchise and Operations Manager Benjamin Fernandes says, “The first rebranded store at Northland Shopping Centre in Victoria has pushed the boundaries. Part of our re-branding has been to focus back on the core values of the business - to go back and tell the story of what our brand
stands for and what we believe in. We’re doing a lot of work this year to really educate our customers on our brand; and to get the customer to buy into Theobroma and understand who we are.” Cocoa or chocolate is derived from the tropical Cacao tree (Theobroma Cacao) and following its Mayan and Aztec heritage, Swedish naturalist Carolus Linnaeus (1707 – 1778) gave cacao the Latin name of Theobroma – food of the gods, a fitting name for a food that is adored by millions of people around the world, in its various forms. Reviving the ‘Food of the Gods’ tagline Theobroma is committed to their mission statement: To pamper the world in chocolates, food and beverages fit for the gods.
HOW IT STARTED Opening a boutique store in Hawthorn, Victoria in 2004, founders Theo Racovalis an award winning craftsman and chocolate connoisseur and George Roiniotis - an architect and designer by trade wanted to fill
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a void in the marketplace with a high quality Australian alternative. Once the decision was made to commercialise and franchise the concept, a showcase store was opened at the now Spencer Outlet Centre, Southern Cross Station, Melbourne in December 2006 and received a phenomenal response. In response to the spiralling demand for high quality chocolates and chocolate beverages as an alternative to coffee, Theobroma provides the perfect respite from a bustling day, with each boutique store housing a chocolate display cabinet that ranges from one to three metres long, with a wide-range of hand crafted couverture chocolates, with eye-catching colours and flavours you won’t find anywhere else. The concept originally revolved around artisan hand crafted couverture chocolate jewels, signature coffee and Belgian hot chocolates and a purely dessert based offering – Chocolate fondues, Belgian waffles, French Croissants, and chocolate themed drinks ice creams and sundaes but it has evolved over the years and now offers consumers a wide variety of chocolates and chocolate beverages;
FEATURE : foo d & b e v er ag e hot and cold beverages including licensed drinks; chocolate desserts; melted chocolate dips; other chocolate related products with some stores now offering a food café breakfast and allday menu. Benjamin says, “There has been a real growth in specialty chocolate cafes over the last 5-7 years. There is a growth move towards premium products what we’re finding is that people are willing to pay for quality, whether it is food, coffee or chocolate. Last year’s IBIS world report into Specialty Chocolate acknowledge the moving trend and estimate the industry revenue to hit over $300milliom this year. We are positioning ourselves to be an integral part of that. “Introducing the full-food menu two years ago and incorporating a semi-commercial kitchen has proven to be very successful. This allows us to have a café style store with high quality food and drinks, that’s fit for the gods. What we found historically was that people were coming to us after eating
their lunch or dinner elsewhere to relax and enjoy our products and we weren’t maximising the opportunity that was available to us. Our customers love what we have done and it’s proven to be a hit with our guests. We have created a unique environment; a casual style café within a pleasant relaxed environment – a perfect place to catch up with family, friends and colleagues.”
“Reviving the ‘Food of the Gods’ tagline Theobroma is committed to their mission statement: To pamper the world in chocolates, food and beverages fit for the gods.” Business Franchise Australia and New Zealand 49
FEATURE : foo d & b e v er ag e
fr a n c h i s o r i n d ep t h : t h e o b r o m a F o o d o f t h e g o ds
“There is a growth move towards premium products; what we’re finding is that people are willing to pay for quality, whether it is food, coffee or chocolate.”
ONE SIZE DOES NOT FIT ALL! All Theobroma stores are designed to drive sales by attracting customers, presenting product in their most attractive manner and to provide efficient workflow. The colours, counter concept and displays provide an attractive and efficient retail layout with both internal and external product display counters to enhance sales and capture the outside audience. “Franchisees choose to buy into a franchise model for differing reasons and we work closely with each of them to understand their individual drive and tailor our model setup to suit. Some wish to leave a mundane job behind them and buy themselves a rewarding job, others want to buy a business to be actively involved and work within it while some may decide it’s more about return on their investment and don’t want to be actively involved with the day-to-day running of the business,” says Benjamin. By believing that one size does not fit all, Theobroma have a range of concepts - all of which are flexible - to suit all franchisees. Appreciating that different areas, people and demographics have different needs, various business models are available to suit the franchisee, as well as the customer.
There are two main concepts to choose from: Lounges and Lounge Bars: created as an environment where the consumption of food and beverages is an experience in itself and offer customers
a selection of seating to suit their mood. Comfortable sofas and tub chairs offer those who wish for a chance to pause and take a break, while the coffee bar and café seating with a selection of timber furniture provide a quick grab and go option. Suitable for large format areas and high traffic zones - predominantly for local shopping strips and entertainment/shopping and café/bar precincts. Our Lounge Bars are licenced and offer a variety of chocolate themed cocktails along with boutique beer and wine. Pavilions/Pavilion Bars: offers its patrons the finest hot and cold beverages, specialising in indulgent chocolate beverages, coffees, blended teas, and other custom drinks. In addition, Pavilion sites offer soft drinks, fresh-baked pastries and other confections, as well as a range of the Theobroma chocolate retail products. Suited to shopping centre environments where a kiosk is favourable over an inline store, it also works strongly in high commuter areas with a captive audience. Our Pavilion Bars are an expanded offering on the Pavilion concept but with the added addition of a chocolate cocktail menu and a limited beer and wine menu. This is suited to either airport terminals or entertainment precincts.
DRIVE AND PASSION All franchisees must share similar business values to Theobroma to succeed, which are Excellence – to strive to be the best in all that is done and Customer Service – to strive for 100 per cent customer satisfaction. Looking for people that have drive and
50 Business 50 Business Franchise Franchise AustraliaAustralia and Newand Zealand New Zealand
passion, Theobroma believe that people are the most important ingredient in making any business a success. Desirable attributes include an ability to make people smile; a friendly disposition; a positive and enthusiastic approach to business ownership and a determination to succeed and grow. As most franchisees wish to stay within their local community, Theobroma work closely with them to find a suitable site, if one is not already available. Franchisees are involved in every step of the process, from design and fit-out right through to opening. A training program which can be tailored to the franchisee’s existing skillset has been developed to aid these values and includes everything there is to know about chocolate, selling skills, inventory control, local area marketing, and all areas of the store operations including POS systems and opening/closing procedures. A professional team with extensive experience in franchising, retail and marketing also provide assistance with site selection; store design and fit-out; property leasing; marketing of the brand and providing marketing support. Theobroma are confident that once you get to know their business model, you’ll become just as hooked as they are. To find out more contact Franchise and Operations Manager Benjamin Fernandes on: T: + 61 3 9480 1030 E: ben@theobroma.com.au W: www.theobroma.com.au
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FEATURE : foo d & b e v er ag e
pr o fi l e : Xpr esso M o b i l e Caf é
BUILD YOUR OWN EMPIRE Do you want to join a franchise system that also focuses on existing franchisees and not just recruiting new ones? How about a 100 per cent Australian owned and operated mobile café system that uses the best coffee and best vans? If the answer is yes, Xpresso Mobile Café set the benchmark when it comes to Aussie mobile cafes! Xpresso was one of the first companies in Australia to install coffee machines in vans, taking premium Di Bella Coffee to thirsty consumers. Xpresso Mobile Café offers franchisees the opportunity to share in the success of an established brand with a proven track record throughout Australia, growing at a rate of 30 per cent each year. Every Xpresso Mobile Café is equipped to supply a full range of hot and cold beverages, along with good quality, local fresh lunches, usually only found in fixed address cafes.
INCOME BOOST Explaining how Xpresso Mobile Café franchisees are an integral part of their local business community, Franchise Development Manager Jonathan Payne says, “There is enormous flexibility in our franchise system with regard to food. Unlike our competitors we’re not a middle man. We encourage our franchisees to connect with bakeries and good quality local food wholesalers and specialist food companies in their area that can enable them to be a full lunch solution to their customers.
“We don’t want our franchisees to just be a morning coffee and muffin franchise. There are terrific wholesalers out there that sell food items such as wraps, rolls, cold pastas and salads, with great profit margins. This is evident with some of our operators earning $750/800 per day, of which half of that is food. As long as the food is individually wrapped and doesn’t require heating, then franchisees are free to offer any food type and help support their local businesses and community.”
unit business owners - purchasing a second vehicle at cost with no upfront fee - and reach break-even for the equivalent cost of just 20 cups of coffee a day,” says Jonathan.
FUTURE GROWTH
BECOMING A FRANCHISEE
With franchisees spread throughout Australia, Xpresso Mobile Café operates in areas where businesses have limited access to quality espresso coffee and products. Franchisees work their own hours Monday to Friday within their own large territory, typically working less than 40 hours a week. In fact, Xpresso is the 2015 Top Franchise winner in the areas of Lifestyle and Passion.*
Owning an Xpresso Mobile Café suits enthusiastic and motivated operators, looking for an excellent work-life balance while working flexible hours and within your local community.
With the security of operating within the larger framework and support structure of a franchise system, Xpresso Mobile Café is enabling existing franchisees to launch their second mobile café within their existing territory for the equivalent of 20 cups of coffee a day. “Our franchisees are always given a very generous territory that has the potential for growth and would very easily support 2 or 3 vans. We have found that after 12 - 18 months on the road, some of our franchisees consider and purchase a second van; which is essentially a passive income once it’s all set up. Utilising Xpresso’s in-house finance arrangement, franchisees can become multi-
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“Typically working less than 40 hours a week, Xpresso is the 2015 Top Franchise winner in the areas of Lifestyle and Passion.”
Franchisees pay a flat weekly service fee, stepped for the first six months. Offering a great return on investment with no hidden costs, from just $119,500 plus GST – which includes an upfront franchise fee franchisees are provided a turnkey operation, brand new fitted out van, all equipment and stock, sundries, training AND customers with an initial income guarantee. If you are looking to build your own business empire within Australia’s billion dollar espresso coffee industry but with the support of an award winning franchisor, contact Xpresso Mobile Café for a new franchisee pack. T: 1300 655 559 E: joinus@xpresso.com.au W: www.xpresso.com.au *TopFranchise.com.au
FEATURE : foo d & b e v er ag e
e x per t a dv i c e
LEASE CONSIDERATIONS FOR FRANCHISEES “Many people don’t think of their exit strategies when entering into a franchise. They are too focused on the new operation. However, sound exit strategies are a very important part of business.” Mark Sherry | Partner | Harmans Lawyers New Zealand
At the time a buyer acquires a franchise they have a lot of different things to focus on. In many instances, the main focus is on the franchise itself and other issues are only given peripheral attention. However, when a franchise is being purchased that requires premises to operate from, it is important to give due consideration to the following issues:
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Many people purchasing a franchise do not give consideration to the length of their franchise term and how that compares with the term of the lease they are signing up to. Where possible, it is highly preferable to try and match these terms so that they align. If someone signs up a franchise for an initial period of five years, but the landlord of the premises will only agree to an initial lease term of eight years, then upon the expiry of the initial franchise term, the franchisee will potentially face serious issues if any of the following scenarios arise: a) If the business has been struggling and the franchisee did not wish to continue in business, or if they have their franchise terminated for some other reason at the end of the first term, they would still have three years of obligations to meet under the lease and no operating business to cover those costs. The only way to be able to get rid of these obligations would be to convince someone else to take over the lease by taking an assignment of it. b) A similar problem could arise if the franchise business is booming and it needs more room to expand. On the renewal of the franchise, the franchisee will either need to try and find someone else to take over the lease or they will need to resign themself to the fact that they’ll have to stay in unsuitable premises for another three years. c) A franchisor will often require their franchisee to have security of premises for the whole of each franchise term. Therefore, a franchisee would face a problem in renewing the franchise for a further five years in circumstances where the landlord wants the premises back at the end of the eight year lease term. In this case both the franchisee and franchisor would need to be confident that replacement premises could be found when the expiry date of the lease approaches. Even if such premises were available, the franchisee would need to relocate and fit them out for the final two year period before his franchise is due for renewal again. That can be a significant cost. If the terms of the franchise and the lease match, then a franchisee is able to make a decision on both the franchise and the premises at the same time. Both are able to be terminated if that is what is wanted without having continuing obligations under one or the other. Similarly, if the business had been growing, the franchisee would be able to exit the premises and take on a new lease while continuing with the franchise.
The franchisor also gets a level of comfort when lease and franchise terms match. They know that if the lease is renewed on a term that matches the franchise, then the franchise will have premises to operate from for the whole of the next franchise term.
Ongoing Liability Many people are unaware that liability often continues under business leases in New Zealand even when a business is sold and the lease is assigned to the new business owner. If a tenant wishes to remove the potential for ongoing liability after they have assigned the lease, they must negotiate this at the outset of the lease. It is during this negotiation period that a prospective tenant can often convince a landlord to be more accommodating on such issues, as they are looking for a tenant to start paying them rental. Many people don’t think of their exit strategies when entering into a franchise. They are too focused on the new operation. However, sound exit strategies are a very important part of business. If a franchisee builds a successful franchise and then decides to sell it, the lease needs to be assigned to the buyer. If the buyer turns out to be a bad operator and the business folds then there is a chance that the landlord could seek lost rental from the previous tenant unless liability was limited at the start of the lease. If this is not possible, then wise business owners should take advice on restructuring their affairs so that in a worst case scenario, if the landlord calls up a guarantee, there may be some protection available for valuable assets.
Reducing Competition When a franchisee is leasing premises in a block of shops or a shopping mall, it is easy to overlook the fact that during the initial negotiation it may be possible to get the landlord to agree to terms that may enhance their franchise’s chances of success. An example of this could be getting the landlord to agree not to lease any of their other premises to competitors of the franchise, so that they can have some exclusivity for their business type from that site. Obviously this does not work for all types of businesses unless carefully drafted. Fast food businesses often are more successful when there is a critical mass of competitors around them, as the mere existence of different food options creates an inviting destination for customers. Therefore, it might be best, to negotiate exclusivity on being the only burger outlet in the premises, rather than just the only fast food outlet.
Clauses Required by a Franchisor Many franchise agreements have specific clauses in them that relate to premises. Some franchise agreements allow for the franchisor to take a head lease of premises and then sublease them to the franchisee. The purpose of this is to allow the franchisor to have direct control over what they consider to be a strategic site. However, more often than not, a franchise agreement will simply provide that a lease should contain certain clauses that give the franchisor an element of control over the leased premises. Essentially the franchisor wants the option to be able to take over a lease if the franchisee’s business fails by having the landlord agree to not take any action for defaults under the lease without first giving notice to the franchisor and giving them the ability to rectify matters and become the tenant. Getting a landlord to agree to such clauses can sometimes be a delicate negotiation. It is not uncommon for an Agreement to Lease to be signed up for premises without consideration even being given to the specific terms in a franchise agreement that relate to premises. If a franchisee fails to obtain a landlord’s consent to the clauses that the franchisor requires it to, then technically this can put a franchisee into default right at the outset of its franchise. However, it is not uncommon for a franchisee to have their franchisor involved in the premises selection and the franchisor can often assist in the negotiations with the landlord to obtain their consent to the required clauses.
Zoning Issues Most urban centres have city plans and those plans will create different zones for different potential uses. When signing up a lease of premises for a franchise it is important to make sure that the zoning allows for the type of business being operated. In some cases it will be blindingly obvious that a zone is appropriate, say if a franchisee wants to operate a retail outlet and the site is surrounded by other retail operations. However in other instances the zone that premises are in may not clear. In such cases it is important to check that the rules do not prohibit proposed operations. Many councils have their city plans online and these will show the boundaries for various zones. In addition most lawyers and commercial real estate agents will be able to assist with zoning queries too.
Business Franchise Australia and New Zealand 55
FEATURE : foo d & b e v er ag e
The Term of the Lease
FEATURE : foo d & b e v er ag e
e x per t a dv i c e
It is very important to check that where premises have had a prior use that differs from that of the new franchise operation, that the change of use will not trigger unexpected upgrades to things such as fire systems, provisioning of toilets or building strength. Examples that the writer is aware of include when former retail premises are suddenly to be used as a food outlet and the council required upgrades to fire systems as well as engineering modifications to the building. Most modern leases will preclude a landlord from taking responsibility for such costs when a tenant seeks to assign an existing lease, so the change of use itself can lead to significant costs.
Building Soundness Leading on from the prior topic, it is critical to make sure that proper due diligence is carried out on the buildings that businesses are to operate from. They must not only be safe, but they must meet a certain level of the building code. Some business owners think they don’t have to do this as a tenant and that it is more of a building owner’s issue. However, after the Christchurch earthquakes, councils around New Zealand have issued notices to building owners to stop certain premises from being occupied where they are deemed to be an earthquake risk. This has meant that the businesses that occupy those premises have been shut
O
“Most urban centres have city plans and those plans will create different zones for different potential uses. When signing up a lease of premises for a franchise it is important to make sure that the zoning allows for the type of business being operated.” out of them. In some cases, businesses have been closed where their premises happen to be located next door to buildings that are deemed to be dangerous, even though their own premises are sound. Historically tenants did not necessarily look at such issues as they were merely leasing the premises and not buying the building. However, recent events have brought about a re-think in this regard. From a tenant’s perspective it is advisable to try and negotiate a clause allowing for a right to terminate a lease if the premises are closed and unable to be occupied by them for a period of time. This would help an affected business relocate and reestablish itself whilst avoiding significant disputes between the landlord and tenant. Although many leases are signed up on relatively standard form documents, the specific terms of them are able to be negotiated. The level of negotiation that is able to be achieved will depend not only on the attitude of the specific landlord and tenant but also on the market environment and whether it currently favours landlords or tenants. Further, the more money a landlord is contributing to assist the tenant in fitting out premises, the less likely they will be
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willing to negotiate on things like the term of the lease and other potential issues that might make a lease more tenant friendly. However, offsetting that can be the influence that strong and reputable franchise systems can bring as they are perceived as good quality tenants. It is therefore important to take expert legal advice prior to entering into both lease and franchise obligations so that the best possible outcome can be achieved and mismatches can be avoided. Mark Sherry, LLB (Hons), BCom, is a Partner with Harmans Lawyers New Zealand. He leads the commercial and property team, specialising in franchising, hospitality, rural law, property matters and asset protection. Harmans is a full service legal firm providing excellent service and advice, allowing Harmans to develop long-term, solid relationships with their clients. For more information please contact Mark Sherry at: P: +64 3 352 2293 M: +64 21 524 890 E: mark.sherry@harmans.co.nz W: www.harmans.co.nz
Own a Slice of La Porchetta!
“
La Porchetta is like a family. They are there for support when we need it and they work with us to improve our business.
“
Vicky and Michael Vincent Franchisee
Join the largest Italian restaurant chain in Australia and New Zealand. You will love taking part of serving our guests quality Italian food, to order, using fresh ingredients. We are looking for passionate food lovers with a strong work ethic and drive to join our family. You bring the drive and commitment and La Porchetta will provide the proven systems, training and support to achieve success.
WHY LA PORCHETTA? • • • • • •
A proven profitable operation. We are a much loved and recognisable national brand. We have strong local area marketing support and advice. Be part our dynamic and engaged family of restaurants that love people. Join our team of restaurant owners who love getting together and share ideas. We offer a flat fee structure that allows you to build your business faster.
Minimum Investment: Dependent on Site Conditions $300k+
Opportunities now available Australia-wide in key metropolitan and regional areas. Visit: http://www.laporchetta.com.au/franchising, email: franchising@laporchetta.com.au OR call (03) 9460 6700. Follow us on Social Media
/LaPorchetta /LaPorchettaOfficial /LaPorchettaChefsTV
Enquire Now
Download our New iPhone App or Android App
www.laporchetta.com
FEATURE : foo d & b e v er ag e
h av e yo u r s ay: r e ta i l f o o d g r o u p
UP CLOSE & PERSONAL
A Day in the Life of a Trainer Adequate training and support is key when starting up a new franchise, as it helps to reduce any risks by providing a supportive environment where there are plenty of resources available and an encouraging community. Having been in the industry for over 12 years, Kristy has seen hundreds of franchisees come through the doors of the Retail Food Group academy and walk out feeling empowered to take their franchise to new heights.
Kristy Thornton
Donut King Product Specialist, Kristy Thornton, has a vision for franchisees to take their success to the next level, offering top quality training and development.
We recently sat down with Kristy to ask her all about what is involved in her day as a trainer, and some important facts for those wanting to get into franchising.
Q
HOW AND WHY DID YOU GET INTO YOUR ROLE AS A TRAINER? A. Training has been a passion of mine for many years and I always knew that it was something I wanted to pursue. I have always loved seeing the potential in new learners and passing on my knowledge and experience to them for their benefit.
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Each new franchisee has their own unique strengths and skills, and I have always found it so rewarding to see them flourish in their current skills, and also develop new ones. After realising my love for all of this, I began to look into the necessary steps to make training a possibility, and before too long I was well on the way to following my dream. I began my journey as an Assistant Manager in 1994 at McDonald’s and worked my way up to a Restaurant Manager in 1999. From there I gained valuable experience at multiple large food chains, learning new skills and knowledge. During this time I learnt how to train and develop new employees, helping them to reach their goals and full potential. This experience opened up the door to become a New Franchisee Trainer at Retail Food Group in 2010, and since then I have never looked back.
Q
TELL US A BIT ABOUT WHAT’S INVOLVED IN THE TRAINING SCHEDULE FOR NEW FRANCHISEES.
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“My favourite part of the training schedule is seeing the difference between the first week and the last week and how far they have come.” A. Every day is different as every franchisee is different, and we take them on a journey. Our training and development program covers all aspects of franchising and the ins and outs of owning a business. It is both a theoretical and practical experience where new franchisees can learn about business skills, customer service, product, maintenance and much more. Throughout the training schedule I go through the ins and outs of Donut King products with new franchisees. The aim of this is for new franchisees to learn the skills and techniques of creating the all-important Donut King products that are well-known throughout the country. My favourite part of the training schedule is seeing the difference between the first week and the last week and how far they have come. Our new franchisees receive thorough training and extensive support so that they feel as empowered as they possibly can. It’s important that the environment is comfortable for learners and I always make sure that I am assessing their progress daily so that they are getting the most out of their training. New franchisees should feel confident and competent with their newly acquired skills so we maintain an ‘open door policy’ with everyone.
Q
WHY IS TRAINING IMPORTANT FOR NEW FRANCHISEES? A. Training is very important for new franchisees as it ensures quality and consistency not only for their individual store, but also for all stores across the brand. Not only this but it ensures that franchisees have the confidence to pass along the right skills to their team and develop them also. Ultimately, training is important for both franchisor and franchisee in producing a successful business.
Q
WHAT HAS BEEN THE BIGGEST LESSON THAT YOU HAVE LEARNT SINCE BECOMING A TRAINER? A. Being a trainer has helped me to understand individual learning styles and facilitate these individual learning styles with the right communication. Each franchisee is different and I’ve found that it’s important to realise that and harness the potential in each individual person.
Q
HOW DO YOU MAINTAIN A GREAT CULTURE IN YOUR TRAINING ACADEMY? A. A great culture among trainers comes from being passionate about what you’re doing as it is infectious to those around you. We also love to focus on having a humble and approachable personality in the academy, making sure that any new learners can feel comfortable when asking questions. I encourage all of our trainers to lead by example and most of all, have fun in whatever they’re doing.
Q
WHAT IS A KEY PIECE OF ADVICE YOU WOULD GIVE TO SOMEONE LOOKING TO BUY A FRANCHISE? A. Buying a franchise is a big decision and there is always a lot to consider. A key piece of advice for new franchisees would be to be prepared to work hard and to be involved in all operational aspects of the business. New franchisees need to know that they will
“A key piece of advice for new franchisees would be to be prepared to work hard and to be involved in all operational aspects of the business.” need to be quite involved in their business, including the set-up, training team members themselves and making sure it all runs smoothly, but the hard work and long hours will all pay off in the end. Although owning a franchise is a big investment of both money and time, new franchisees need to remember that there is always support and an encouraging community behind them – that’s the great benefit of the franchising system.
Q
WHAT IS A KEY PIECE OF ADVICE YOU WOULD GIVE TO ANOTHER TRAINER WHEN IT COMES TO TRAINING A NEW FRANCHISEE? A. A key piece of advice that I would give to another trainer would be to ensure that you are being adaptable to all learners. It’s also important to create a good working relationship with your learners and spend time understanding their experience. Understanding their experience will ensure that you are able to facilitate the best training to suit their specific learning style and ultimately help develop them to be the best that they can. www.rfg.com.au
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PIZZA HUT FRANCHISEES UNSUCCESSFUL The long awaited decision in what has come to be known as the ‘Pizza Hut Class Action’ was published publicly on 26 February 2016. 190 Pizza Hut franchisees sued their franchisor in relation to a decision to reduce pizza prices in 2014. Facts The basic facts were that the Franchisor of the Pizza Hut Network, Yum Restaurants Australia Pty Ltd (Yum) decided in early 2014 to implement a new model whereby it would:
1. reduce the range of pizzas offered for sale from four to two (reducing the total number of pizzas for sale from 27 to 17); and 2. drop prices on the two remaining ranges from $9.95 to $4.95 and from $11.95 to $8.50 respectively. This was known as the ‘Value Model’.
“Decisions that adversely affect franchisees, do not necessarily mean a franchisor has not acted in good faith or unconscionably.”
The Value Model The Value Model included reductions in certain price points and was scheduled to commence on 1 July 2014. The Value Model relied on New Zealand data (in particular, the adoption of New Zealand benchmarks and labour hours) and the results of the Australian Capital Territory trial (discussed below) The objective of the Value Model was to increase sales by 34.5 per cent. The Value Model had been trialled in eight
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Pizza Hut franchises in the Australian Capital Territory between February and April 2014. All eight franchises were owned by the one franchisee. As part of the trial, Yum agreed to indemnify the franchisee for any losses incurred in the trial. Yum ultimately paid the franchisee almost $200,000. There was a substantial dispute between the parties as to the success of the trial.
After franchisees had been informed of the introduction of the Value Model, 80 of them sought an urgent injunction from the Federal Court of Australia to restrain Pizza Hut’s implementation of the Value Model on 1 July 2014. The application, made on 19 June 2014 was heard and determined by the Court on 24 June 2014. The Court dismissed the franchisees’ application, clearing the path for the Value Model to be implemented on 1 July 2014.
“Typically (and expressly in this case), franchise agreements do not contain any promises that franchisees will make a profit.” Raynia Theodore | Principal | MST Lawyers
the meaning of the Competition and Consumer Act 2010 (Cth).
New proceedings
Judgment
A fresh court action was issued on 12 August 2014 which eventually proceeded to final hearing over 18 days in mid to late 2015. This second proceeding involved 190 franchisees (out of a possible 200), led by one franchisee (Diab Pty Limited and its director and majority shareholder Danny Diab) who owned and operated six franchises in the Greater Macarthur region of New South Wales and had been involved in Pizza Hut businesses since 1989.
The Court found:
Much of the debate turned on clauses C1 and 6.2 of the Franchise Agreement which stated: C1 MAXIMUM RETAIL PRICE Franchisee will not permit any Approved Product to be sold at the Outlet at any price exceeding the maximum retail prices advised by Franchisor to Franchisee from time to time. 6.2 Franchisee will participate in such national and regional advertising, promotions, research and tests as Franchisor from time to time requires and Franchisee will not have any claim or action against Franchisor in connection with the level of success of any such advertising, promotion, research or test. The franchisees made three core allegations, namely: 1. pursuant to clause C1, Yum was obliged to set profitable prices – in other words, Yum was obliged to fix prices that would enable franchisees to make or increase its profits; 2. Yum was subject to the following implied duties owed by Yum under the Franchise Agreement to each Franchisee: a. an implied duty to co-operate with the Franchisees to achieve the objects of the Franchise Agreement and b. an implied duty to comply with reasonable standards of conduct, taking account of the interests of both parties to the Franchise Agreement and 3. Yum’s conduct was unconscionable within
1. Yum was not obliged to fix prices for each product line so each product line was profitable. The object of the Franchise Agreement was each franchise business, not each pizza; 2. Although Yum owed a duty to co-operate with franchisees, the duty was not breached; and 3. Yum had not engaged in unconscionable conduct. In effect, the Court found, as a whole, Yum’s decision to implement the Value Model was based on reasonable grounds and made in good faith on the belief that it would increase franchise profitability. Simply because the plan did not maintain profits or realise increased or a maintenance of profits (which were otherwise declining) did not make Yum liable for franchisees’ losses. The evidence showed that, for the most part, Yum had carefully considered the strategy in fixing the maximum prices. No dishonesty, negligence, bad faith or recklessness had been demonstrated nor had any decisions been made capriciously or arbitrarily, although one Yum staff member involved in the analysis of the ACT trial was found to have demonstrated poor business judgment through his naivety. The Court agreed with Yum’s submission that the Value Model included more than just price reductions. The Value Model initially included increased marketing budgets, “first to market” advantage and a consequential uplift in transactions and sales. The Court further held that clauses C1 and 6.2 expressly made clear that: 1. Yum had complete control over promotions and fixing maximum prices; and 2. Yum’s liability for unsuccessful promotions was excluded. In this case, the benefit of hindsight
illustrated that the results of the Value Model were not as bad as predicted. However, hindsight, although beneficial, could not be used to demonstrate that a decision made in good faith, which led to what was ultimately an unsuccessful strategy, created any liability on the part of Yum franchisees. Ultimately, the question was not whether the decision (or, in fact, the modelling underlying the decision) was right or wrong, but whether the decision was reasonable.
Critical points to take away Some of the key points to remember, as a result of this decision, are: 1. typically (and expressly in this case), franchise agreements do not contain any promises that franchisees will make a profit. 2. there is a common law duty on parties to commercial contracts to exercise their discretionary powers (i.e. the power the set maximum prices) in good faith, honestly and with reasonable cause. In other words, clauses in franchise agreements that expressly empower one party (typically a franchisor) to make discretionary decisions must be exercised in good faith, honestly and with reasonable cause. 3. decisions that adversely affect franchisees (including, for example decisions that adversely affect sales and profitability) do not necessarily mean a franchisor has not acted in good faith or unconscionably. MST Lawyers has over 25 years’ experience in franchising, representing clients throughout Australia and internationally in a variety of industries. Written by Raynia Theodore, Principal and Jack Newton, Lawyer, in the Corporate Advisory and Franchising Team at MST Lawyers, please contact the Corporate Advisory and Franchising Team for assistance or further information. T: 03 8540 0200 E: franchise@mst.com.au W: www.mst.com.au
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Funding a food and beverage franchise The purchase of a food and beverage franchise business is a significant investment decision which can be both an exciting and anxious time for a potential franchisee.
The food and beverage sector has always offered many appealing opportunities in franchising with a large variety of options available to potential buyers. Funding a food and beverage franchise business is a very unique experience as both the franchisee and the bank need to consider additional benchmarking information. Benchmarks are a guide which assists a franchise business to compare itself against similar businesses within the same franchise system or within the same industry. From
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a bank’s perspective benchmarks are vital as they demonstrate the business’s ability to service its debts. Key benchmarks which help assess the profitability of a food and beverage franchise business includes sales performance; gross profit (GP); food and beverage costs; wages and rent. Business profitability in turn determines the ability of the business to obtain funding and rewards its owners for the investment risk.
Sales are influenced by such aspects as the drawing power of the particular brand, its location, price, availability of parking, service proposition and atmosphere etc. Even if sales are strong that does not necessarily lead to increased profitability unless a business can also sustain or improve the gross profit margin and minimise other operating costs including expenses such as wages.
“Understanding food and beverage costs and how to control these costs can be the key to success in the food and beverage industry.� Labrina Tsekouras | Senior Business Development Manager VIC & TAS, Westpac
FOOD AND BEVERAGE COSTS Understanding food and beverage costs and how to control these costs can be the key to success in the food and beverage industry. The fact that franchisees can compare their cost of food with others in the same franchise system (benchmarking) is a really important advantage when it comes to getting the balance right. Lowering food and beverage costs increases the gross profit margin, which influences the bottom line and hence improves the business’s ability to service their debt. Many franchise food and beverage brands have very sophisticated measurement tools and management information systems to assist with controlling food and beverage costs. These tools break sales down into categories or even specific items so that franchisees are aware of what contribution each category or item makes to their gross profit. Gross profit is also influenced by factors like wastage and shrinkage (theft) which need to be carefully monitored by a business. Larger volume of food and beverage purchases from the bigger franchises enables better negotiated prices than individual businesses, lowering their food and beverage costs and increasing their competitiveness and profitability.
WAGES Preparing and serving food and beverages is a fairly labour intensive activity and the profitability of any business is damaged if the business is over-staffed. Getting the staffing levels right compared to other similar businesses is very important and a key benchmark measurement. Wages is one key aspect which franchisees have control over. By simply rectifying overstaffing and/ or working in the business as an owner/ operator, it is sometimes possible to increase the profitability of the business significantly.
RENT For many food and beverage businesses a location which offers superior foot traffic, vehicle traffic and good parking becomes an important factor to drive and influence sales. These location advantages in turn are often also a direct influence and will usually result in much higher rent costs/overheads. Shopping Centre locations also present specific challenges because the rents are generally higher. The rent payable has to be carefully considered before the purchase of a business because it creates a large fixed cost component which can have a direct impact on profitability and the ability of the business to survive a period of downturns in sales.
FUNDING With some preparation and planning franchisees can save time and money in the funding process. After identifying the food and beverage franchise opportunity, the next step is to determine ways to fund the purchase. It is therefore important to work with the franchisor, an accountant and lawyer to find out what is achievable, what is
realistic and to put together a comprehensive business plan to achieve the right funding available to you. A business plan will assist franchisees to understand the majority of their financial requirements such as purchase price and setup costs, stock requirements, debtor levels and ingoing costs (for example, legal fees, accounting fees, stamp duty, government charges, insurance prepayments, landlord bonds etc.) Franchisees should choose a bank which has expertise in the franchise sector and which provides a range of financial products and services that the franchise business will need. In all probability this will not just be one simple loan but will involve a combination of two or more of the following options:
Business Term Loans Bank business term loans are repayable over a specified term and are therefore a well suited finance for the initial purchase, or the set-up of a business. This can include funding for the franchise fee, initial stock, fit-out and equipment costs. Care should be taken to match the term of the loan with
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SALES
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“Many franchise food and beverage brands have very sophisticated measurement tools and management information systems to assist with controlling food and beverage costs.”
the remaining term of lease and franchise agreements to ensure that business debt is fully paid at the expiry of these agreements. Generally business term loans can be secured against equity in the borrower’s residential property or, in some situations, the borrower may be able to use the assets of the franchise as part of the security mix. This will depend on the arrangements between the bank and the franchisor and if an accreditation is in place. In practice if an accreditation is in place this means that a potential franchisee needs less of their own money to get into a franchise business as they can secure part of the investment against the assets and future cash flow of the business.
Short term funding - overdraft This type of finance is suited to cover cash flow fluctuations. Overdrafts may be suitable for seasonal business and franchises with a high level of debtors or stock. This facility is generally secured by the borrower’s residential property.
Equipment finance and leasing Many food and beverage businesses require specialised equipment such as pizza ovens, coffee machines, cool rooms, display cabinets and vehicles. Equipment finance is normally managed using the equipment as security and over a term within the useful working life of the item being funded. Equipment
finance has the advantage of lowering the equity/investment required, as funding could be up to 80 - 100 per cent of value (if new). This is a facility for a specified term secured by equipment and may be provided by a bank or finance company.
Secured funding This is used extensively, particularly where long-term funding is required. It may require an owner’s contribution for example, free equity in a property or the total funding can be secured against the property. Other forms of security or third party guarantees can also be considered. Secured lending would usually be the cheapest option and the part of the loan secured against property can often be done over a longer term, which can lower monthly repayments and ease cash flow pressures.
Landlord contribution
business then buying a franchise may enable you to afford a much larger food business than if setting up an independent outlet. Westpac has supported the franchise sector in Australia for over 20 years. The growth of a specific franchise system is supported by providing streamlined processes for lending, as well as access to other lending transactional solutions. The bank also has a national network of franchise specialist business bankers who are able to deal with specific day to day needs of the franchise customer. Labrina Tsekouras is the Westpac Senior Business Development Manager for Victoria and Tasmania and specialises in the franchising sector. Contact Labrina at: Phone: 0418 246 903 Email: ltsekouras@westpac.com.au Web: www.westpac.com.au
In some instances another possible source of funding could come via the landlord in the form of fit out contributions and set up costs. A bank with a specialist franchise team like Westpac is often prepared to lend against new (greenfield) and existing franchise businesses which are accredited. If you are looking at getting into a food and beverage
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The information contained in this article is intended as a guide only and is not intended as an exhaustive list of matters to be considered. Persons entering into franchise agreements should seek their own independent legal, accounting and other advice.
on sale Friday 1st July
next feature investing in your future A regular of Business Franchise Magazine, our special supplement in franchising showcases a different industry each issue To share your specific expert industry advice or to feature your franchise in the next issue, please contact: Kathleen Lennox, Sales & Marketing Manager Phone: 03 9787 8077 Email: kathleen@cgbpublishing.com.au
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What you need to know about HR for your franchise “The reality is employment law is equal in both franchised and non-franchised businesses – you are ultimately still responsible for what goes on in your business.” Barry Lehrer | Founder and Director | DiffuzeHR
You’ve made the leap and decided to invest in a franchise. You’re going down your checklist to make sure you’ve done everything right. Set up the business? Check. Hired your staff? Check. Kept your records up to date? Check. Everything seems to be going well... so far. But how do you make sure everything keeps going well? One of the biggest ways franchisees set themselves up for failure is not putting enough emphasis on the administrative side of running a franchise business – and that includes HR.
As a business owner, you now have to be across so many things, whether that be putting in long hours physically, inducting new staff members, looking after finances, and so much more, that slowly but surely administration and HR often gets pushed to the bottom of the pile. This can be a dangerous situation. “But I have everything I need from the franchisor when I initially bought in,” you might say. That’s partly true – when you buy into a franchise, you’ll likely be offered a resource pack or ‘business model’ guide to follow, complete with contracts, policies, and training handbooks you’re expected to follow. But the bottom line is: There is no difference between HR in a franchise business and any other small business. While different franchises may promote a method of managing staff, the reality is employment law is equal in both franchised and non-franchised businesses – you are ultimately still responsible for what goes on in your business.
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It’s up to you to make sure what you’re getting is foolproof. This is where you as a franchise owner need to step up, and here are some of the things you can do to make sure you’re keeping your business updated and compliant.
Look carefully through the franchisor’s resources From the franchisor’s point of view, the best situation for them is if they can go from one franchisee to the next and see a consistent approach, culture, and methodology. Unfortunately, many franchisors don’t provide the backbone for this, or definitive method which is led, embraced, and managed proficiently. This often results in inconsistency across franchises. When going through existing resources, take note of: • Suitability: Are the documents provided correct and inclusive of contracts, policies, letters of employment, training handbooks, etc.?
• System: Do they provide a system for you to easily file paperwork (electronically or physically) and keep up to date with compliance issues? • Staff management: You’re not an HR expert, nor are you expected to be one. Does the information you have introduce a streamlined administrative process for people management?
Review your hiring and onboarding processes Although you’re buying into the name, systems and market of an existing brand, you still have to pull your own weight when it comes to hiring the right staff and making sure the onboarding process is the best you can make it. One way to do that is to create a detailed position description when advertising employment opportunities. If you understand what you want your employees to do, you can recruit to meet these specific needs. The next step is ensuring new employees are integrated
into the business, feel supported and have the right training and there’s a thorough induction process.
Ensure Work Health and Safety (WHS) policies and workplace policies are current
Finally, you should have an ongoing educational process to manage and retain the right people. People are likely to be your biggest asset, which means you must introduce a system where they feel they are getting consistent feedback, regular performance management reviews and career progression opportunities to promote them staying in the business for the long haul.
Bring legal documents up to date To protect yourself against costly claims, make sure all of your employees and any new members you’re thinking of recruiting have legally compliant employment contracts. This will reduce your legal risks if employee agreements end badly. Look over the contracts which may have been provided and ensure they cover areas such as employee awards, work hours, leave entitlements, remuneration, compliance with policies, duties and have a clear position description.
Although you’re a franchisee, it is still up to you to ensure your WHS policies are upto-date and enforced in a legally compliant manner. This means, so far as is reasonably practicable, you must ensure the physical safety and mental health of your workers. To do this, Safe Work Australia suggests you start by considering what could go wrong at your workplace and what the consequences might be. Then, you must do whatever you can—whatever is reasonably practicable – to eliminate or minimise the health and safety risks arising from the work your organisation undertakes.
Look out for important industry updates It’s important to constantly check for updates that apply to the industry you’re in to ensure you’re not falling behind on state and industry requirements in areas such as WorkCover, awards, penalty rates and accreditation.
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Modern Awards, collective agreements, wage rates, leave entitlements and unfair dismissal, among other things, can all be a minefield to navigate and ensure that all obligations are met. Failing to miss a legislative change to industry requirements can spell costly and stressful legal proceedings. For example, if a long-term employee leaves your company after a dispute, clauses in their employment contract may not be compliant anymore if you didn’t keep their contract up-to date. This means some of the provisions could be void, increasing your legal risks if the matter goes to court. What you need to know is that employees today are aware of their rights, and are more likely to speak out if they don’t think they’re getting what they deserve.
Systematise and automate your HR process Twenty five per cent of a franchise owner’s time is spent on employment paperwork. Cutting back the time you spend on administration is important if you want to be more involved in creating a positive culture within your business and making improvements that will bring more profit. Implementing an effective HR system or software can streamline your company’s HR process and reduce the pressure of managing HR issues alone.
“Although you’re buying into the name, systems and market of an existing brand, you still have to pull your own weight when it comes to hiring the right staff.” Systematising and automating your HR process can cut more than 10 hours a month on administration time while also streamlining staff scheduling and ensuring all legal requirements are up to date. A good HR system will provide everything from employment contracts to workplace policies, job descriptions and performance review and management processes, which will make resolving issues, such as workplace bullying, easier and eradicate any ambiguity around employee rights.
And my number one tip... Don’t think HR problems will magically go away. They won’t. You need to spend the time to set up a system to fit in with your needs, providing the compliance and management processes that you require both from a legal, compliance, and cultural approach. Most franchisees believe they have to go with what they’re given. That’s not true. You can implement an HR, management, or administration system which differs from the model the franchisor offers you if you feel the ones provided don’t meet your requirements – as long as you’re meeting their standards. Ultimately, making sure you’re in control of your franchise’s HR will save you a lot of time,
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money and reduce risk in the long run. Don’t wait around any longer – as the saying goes, “A stitch in time saves nine.” Barry Lehrer is the Founder and Director of DiffuzeHR, a best-practice HR system which is transforming the way businesses in Australia operate. DiffuzeHR approaches HR by giving businesses access to an easy-to-use, cloud-based system (and the smarts) to ensure compliance and take the pain out of managing their HR administration. DiffuzeHR helps SMEs by allowing them to minimise risks, reduce legal fees, decrease time spent on admin, attract and retain staff, and leverage best-practice, industryspecific HR and legal expertise in a way that is simple, easy, and efficient. P: 03 9098 4318 E: support@diffuze.com.au W: www.diffuzehr.com.au
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fr a n c h i s i n g e x p o
Franchising Expo debuts in Perth know it will also go well in Australia, and the UFG team headed up by Patrick Ryan look forward to meeting people around the country to show them the benefits of joining this dynamic franchise.” Like its sister Expos in Sydney, Brisbane and Melbourne, the Perth event will offer visitors a forum to compare and research a diverse range of franchise opportunities, with investment levels from under $10,000 to more than $500,000. There will also be legal and financial advice to buy and set up your new business or franchise and the Franchise Council of Australia (FCA) will be on hand to provide information and answer any franchising queries.
United Franchise Group’s CEO Ray Titus (right) in Sydney with National Sales Director Patrick Ryan
The Franchising & Business Opportunities Expo is going from strength to strength – kicking off 2016 with an exciting show in Sydney in March and a brand new Perth show this month, followed by Brisbane and Melbourne shows in July and August. Exhibition Manager Fiona Stacey says the new Perth Franchising & Business Opportunities Expo will be a boutique event for one day only on 15 May, held at Crown Perth. “The time is right and the team are very excited about working with exhibitors and the Franchise Council of Australia (FCA) to make the Perth Franchising & Business Opportunities Expo a professional showcase event,” Stacey says. “Crown is a stunning venue that offers easy access, free parking and onsite
accommodation. Visitors will still be able to see all the franchising and small business options, talk to the names behind the brands and attend business seminars.” Exhibitors ready to meet franchisees at the show in WA include Bakers Delight, Jan Pro Cleaning Systems, Aussie, Hairhouse Warehouse, Snap-on Tools, Just Cuts, V.I.P. Home Services, Experimac and Minuteman. “We had a great start to the year in Sydney, I am always amazed by the sheer diversity of businesses on offer,” she adds. “For example Sydney we saw many new food offerings, such as health-conscious Skinnys Grill, flavoured fries at Potato Corner, fresh and cooked chicken from Lenards, and hamburgers from the USA’s Johnny Rockets. “There were also some really innovative concepts such as National Drones, Putt18 indoor golf, Portermark’s beer line cleaning and Experimac with Apple product upgrades and repairs.” Ray Titus, CEO of United Franchise Group, visited Sydney from Florida to assist the UFG team with the launch of Experimac. “We only launched the brand in USA a year ago, and we already have 60 stores,” he says. “I
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“It’s always important to research online, but nothing can replace the value of meeting someone face to face to discuss your dream business,” Fiona Stacey explains. “We also find that exhibitors benefit from networking at the show with like-minded people, and from getting a good feel for the market in each state.” Information and visitor pre-registration is available at www.franchisingexpo.com.au. For information about participating in the 2016 Franchising & Business Opportunities Expo contact Fiona Stacey by email fiona@specialisedevents.com.au or by phone 03 9999 5464.
Diary Dates: Perth: 15 May Crown Perth, Burswood
Brisbane: 23-24 July Brisbane Convention & Exhibition Centre, South Bank
Melbourne: 26-28 August Melbourne Exhibition Centre, South Wharf
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What should you expect
from your franchisor? “Prospective franchisees are encouraged to do as much homework as they can, including online by searching the brand and the industry in which it operates.” Professor Lorelle Frazer | Director, Asia-Pacific Centre for Franchising Excellence | Griffith University
The key to answering this question is to do your own homework on exactly what to expect and base your decisions on that information, not the glossy sanitised version. When you have your expectations based on an unreal vision, then there are bound to be complications. Once you know just what to expect in your prospective franchise system, then you are less likely to be disappointed by your decision or your franchisor. Making sure you do your homework thoroughly is the number one message from the Asia-Pacific Centre for Franchising Excellence for anyone looking to buy a franchise. This homework, often more formally referred to in the sector as ‘due diligence’, needs to focus not only on the type of franchise you will buy, but also what you will then receive from that franchise system as a new franchisee. Extensive research and knowledge will help set solid foundations for success for any franchisee, and will ensure you are as fully prepared as you can possibly be and know exactly what you are getting into. Griffith University’s Asia-Pacific Centre for Franchising Excellence is an invaluable resource for anyone starting their journey in the world of franchising. While the Centre is a great place for franchising information, the Centre’s Director Professor Lorelle Frazer cannot stress enough that “it really does pay for new franchisees to do their due diligence and not rely just
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on what they are told by the franchisor.” This goes beyond just the legals and leasing. It means asking lots of questions about the system that you are buying and the ongoing support and ability for the system to be dynamic and not outdated. The Centre is completely independent and impartial, there are no vested interests or selling of franchise systems, with a focus on education and professional development, including pre-entry education for new entrants to the sector. Professor Lorelle Frazer is the Director of the Centre and has been undertaking extensive research into the area of due diligence in franchising, in conjunction with Associate Professor Jenny Buchan of the University of New South Wales. They say research has revealed that potential franchisees are often complacent about conducting proper due diligence. Many do not devote enough time or are unwilling to pay for expert advice. Their emotional attachment to the brand often overrides objective information. To undertake effective due diligence, a prospective franchisee needs to keep an open mind and to seek out and dispassionately question all information. Below is a description of many a naïve firsttime investor into the franchise sector: “We love the brand and we are willing to
invest our life savings in it. After all, this is a well-known franchise with hundreds of stores so it must be good. The franchisor says it is offering a proven business. It has given us a disclosure document containing many pages of information and we have tried to read the franchise agreement. There is also a lease. To be honest, we can’t really understand all the legal jargon. We just want to get started on running the business. Besides, won’t the Franchising Code of Conduct protect us?” As Professor Frazer and Associate Professor Buchan explain it, you wouldn’t buy a car before taking it for a test drive, having it checked by a mechanic and making sure there was no money owing on it, so why wouldn’t you apply the same rigor to investing your hard earned savings and potentially tying yourself into a business for at least five years. Buying a franchise is a big step. When you are considering such an expensive commitment, it is a sound first step to visit a lawyer and an accountant who really understand franchising, from the franchisee’s perspective, for their advice. Prospective franchisees are encouraged to do as much homework as they can, including online by searching the brand and the industry in which it operates. They should also check out the website of the franchise sector regulator, the Australian Competition and Consumer Commission, which investigates
breaches of the Franchising Code of Conduct. Franchisees can also educate themselves on the ACCC site, which has funded an online pre-entry franchise education program run by the Asia-Pacific Centre for Franchising Excellence. The best advice for deciding on which franchise in which to invest, is to not totally rely on one single source of information. Remember, there is always going to be another franchise opportunity so if you are not completely happy; do not rush into buying.
WHAT THE FRANCHISE SYSTEM OFFERS Once you decide on your franchise, you have to keep on doing your homework to maximise what is provided by that franchise system. Elizabeth Gillam, the founder and CEO of Franchisee Success and a very successful multi-site franchisee, says it is crucial that new franchisees make the most of the systems and support of their franchisor. The first step is in knowing exactly what is in that franchise system. “It is very overwhelming when you buy into a franchise system,” Elizabeth says. “You have to learn a lot of things very quickly and on top of that you have to start operating your business. The first six months or so are chaotic. But it can become less chaotic when you go looking into
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the manuals that came with the system. Be sure that you are familiar with all that they contain because chances are there are many tools in these manuals that can help you. Sometimes you have to run the business for a while and actually encounter a problem before you go looking for a solution.” It is also very important for franchisees to implement the franchise system that they have purchased. “One of the most common mistakes I see franchisees make is they are too busy being busy and they forget to implement the system they bought,” Elizabeth says. “They know all the systems, processes and forms are there, but they are just too busy to get to it. Trust me, take the time. I know from firsthand experience that you can get caught up in jumping from one crisis to another, but most times if you take the time to implement the process, then the crisis may never have happened. “Implement the system as it is detailed in the manuals. Give the franchisor the benefit of the doubt that the system is workable. After all, they have been running the process for some time before they decided to franchise. Don’t try to change it. Implement it, work with it then refine it if you need to.” Another valuable piece of advice for new franchisees is to nurture the relationship with your Operations Business Consultant.
“Your due diligence shouldn’t just be all about legal terms and leases. When you’re running your business you’ll want to know that you can rely on the system, the people that support the system and what’s in place to keep that system up-to-date so that your investment doesn’t stagnate.” “Remember the old saying that you win more friends with honey than you do with vinegar,” Elizabeth says. “Well it is never truer than when dealing with your operations business consultant. Firstly, you are both there to help each other, so nurture the relationship. Take the time to get to know him/her. See how they operate their day. Do they read their emails early in the day or late? When is the best time to call them? How do they prefer to communicate? I know it is hard when everything is going wrong, but yelling at your Ops consultant won’t fix the problem, nor will it help you to find an answer. You are not the only person they look after - you are one of many so find out how to work best with him or her.” And finally, don’t be afraid to ask for help when you need it. “This is a big one and one that I probably didn’t do enough,” Elizabeth says. “No-one knows what is actually going on at your store. The franchisor is not there so he doesn’t know. But for you the problem is very real and unless you ask the questions, no-one will be able to help you solve it. Quite often other franchisees are having similar problems and there is always someone who has been quite ingenious in solving it. Make the most of
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being in a franchise system. Take part in the communication panels. Attend the franchisee meetings - your business will always benefit.” The Asia-Pacific Centre for Franchising Excellence was launched by Griffith University in March 2008, formalising the University’s commitment to franchising research and education. Its aim is to help advance franchise sector best practice through independent research, education and the dissemination of information via the Centre’s website. Led by one of the world’s leading and most highly respected franchise researchers Professor Lorelle Frazer, the Centre works to transform research findings into practical outcomes for business. Centre members actively engage with key government bodies and franchise associations across the Asia-Pacific, as well as with other franchise academics across the globe. P: W:
07 3382 1401 www.franchise.edu.au
pr o fi l e : n ATIO N A L F R A N CHISE I N SUR A N CE B RO K ERS
How NFIB Simplifies
the franchise Insurance Process
The insurance needs of franchises are unique, as cover is required for both the master franchise and the franchisees’ businesses.
National Franchise Insurance Brokers (NFIB) was formed in 2010 specifically to address the insurance needs of franchises, and has sought to find a better and simpler way for franchisors and franchisees to financially protect their business interests. The NFIB system streamlines the process of securing insurance cover for franchised businesses through an easy-to-use automated system that meets all insurance compliance requirements.
NFIB’s background and products NFIB is owned and operated by LTM Risk Partners, which has been in operation since the 1970s. NFIB’s policies are underwritten by insurers approved by the Australian Prudential Regulation Authority (APRA) and include cover for property, public and products liability, business interruption, fire and perils, machinery breakdown, burglary and various other types of business insurance. Workers’ compensation insurance can be arranged in some states as well. NFIB can also arrange separate personal insurance such as home and contents, boating, life insurance and income protection, offering policyholders the convenience of having their personal and business insurance held in one place.
How NFIB’s system works Under an NFIB managed program, the insurance cover required is negotiated with the franchisor according to the business’s risk profile and financial protection requirements. The franchisor then endorses NFIB as the preferred insurance provider for their franchisees.
“NFIB is expanding globally in 2016, including opening for business in New Zealand on March 1 by partnering with Rothbury Insurance Brokers.” When franchisees decide to come on board they only need to hook into the existing system using a few clicks, saving themselves the trouble of sourcing suitable insurance and ensuring that their businesses are fully insurance-compliant.
to NZ as there are many existing franchisor groups that are part of NFIB in Australia that have franchise networks in NZ. This partnership will see both countries being able to work together to expand the services we provide to the franchise market.”
A managed program provides a number of distinct advantages for franchised businesses, including the cost savings that come with group or bulk cover, a simplified process, as well as appropriate and uniform insurance cover throughout a franchise.
Conversations are also underway with potential partners in the UK, Spain, Germany and the Netherlands to represent NFIB in their regions, and Mr Morris has expressed his keenness “to finalise new partnerships in new regions in the northern hemisphere.”
Other benefits include 24/7 online access, common insurance due dates, a fast claims turnaround time, an easy renewal system, comprehensive documentation including Certificates of Currency, and dedicated account executives and customised online sites for each individual franchise.
These expansions will be managed through Worldwide Franchise Insurance Brokers (WFIB) – a global franchise insurance organisation which has been established based on the successful implementation of NFIB in Australia. In the same vein as the NFIB, WFIB provides a streamlined method of securing insurance for franchised businesses across the globe.
Franchisors are also provided with their own dashboard so they can monitor their franchisees’ insurance activities and ensure all policies are up-to-date. NFIB’s system of insurance is proving very popular, and a number of well-established and well-known Australian franchises have joined the program.
Latest news – global expansion NFIB is expanding globally in 2016, including opening for business in New Zealand on March 1 by partnering with Rothbury Insurance Brokers – a company with branches throughout the North and South Islands. NFIB Director Darryl Morris said the expansion would provide greater synergy between Australia and NZ. “I am very pleased to now be represented in this region and we are excited about the development of the partnership,” he said. “It is a natural progression for NFIB to move
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Significant growth on home shores As well as international growth, NFIB has also seen significant increases in franchisor client groups here at home, with customers growing at the rate of 20 per cent per annum. In fact, franchising across Australia is growing, with a recent IBISWorld industry report stating that revenue is expected to increase by 2.3 per cent per annum over the next five years. With the growth of franchising in Australia looking set to continue, NFIB is well placed to continue providing streamlined tailored solutions for Australian franchisors and franchisees into the future. T: E: W:
1800 776 747 info@mynfib.com.au www.mynfib.com.au
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fr a n c h i s o r i n d ep t h : appl i an c e tagg i n g s er v i c es
ATS know where you have come from… For many, the opportunity to run their own business has been a lifetime goal. For others, a sudden change in employment status prompts a new desire to be in charge of their destiny in order to secure the future of their families. No matter what your reason is for looking to establish your franchise business, one thing remains constant amongst most franchisees – the overwhelming desire to create a lifestyle for their families they had not been able to achieve previously. That’s not saying the establishment of a franchise business is easy. In fact, some franchisees may not overcome the challenges associated with the first few years of their new franchise business. Suddenly, you are ‘The Boss’ and your business success now rests on your shoulders. You are now not only the Managing Director, but also the Receptionist, Sales Rep, Marketing Analyst, Accounts Clerk, Debt Collector, HR Department and IT Guru. How does this leave you any time to become an expert in your new chosen field and work on your business strategy? How can you keep all the balls in the air and put the time in to building a successful business? Importantly, how do you then create the time to enjoy that lifestyle you and your family so desire?
ATS know you need to focus on your strengths… Having experienced the challenges associated with building a successful business themselves, when Ainslie and Sarah Allen decided to franchise their Electrical Safety Testing
“In addition to helping its franchisees, another benefit of ATS having a central support office is the ability to secure and manage large national contracts.” business, Appliance Tagging Services (ATS), they wanted to provide a total ‘back-end’ administration service for their franchisees. “We know how difficult it can be managing conflicting priorities when you are a sole operator. On one hand, you can get so bogged down with invoicing and admin that your business and customer service starts to suffer. And on the other, if customer service comes first, invoicing and debt collection gets overlooked and cash flow screams to a halt. “We didn’t want that to happen to our franchisees or to our valued customers. We wanted our franchisees to focus on their core business – providing exceptional customer service, servicing their clients’ test and tag requirements, and growing their local businesses. We wanted them to be confident the experts in the ATS support office would take care of the ‘back-end’ and leave them free to build their business. “We firmly believe our model gives our franchisees a head start when establishing their businesses.”
ATS know safety is a booming sector… ATS and its network of franchisees provide electrical safety and essential services to businesses across Australia (and shortly in New Zealand). Services include Testing and Tagging, Exit and Emergency Lighting Inspection and Testing, Fire Equipment Testing, Safety Switch Testing and Microwave Leakage Testing. As most of ATS’s services are governed by Workplace Health and Safety, Electrical Safety, Essential Services and Building Safety Regulations, ATS provides
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guidance on the legislation applicable to both clients and franchisees. ATS’s clients include large national corporations, government agencies, the manufacturing sector, large retail chains and smaller single site operations. ATS franchisees benefit from access to ATS’s proprietary world class reporting and management tools. These systems have been designed and developed around the requirements of ATS clients large and small and provide unprecedented access to testing data and reports, along with detailed analysis of testing history. These unique reporting and management systems set ATS apart from its competitors and provides its franchisees with a real point of difference that can be leveraged in the marketplace.
ATS know you need reliable cash flow… Nathan Brown, one of ATS’s longest serving franchisees believed that the support provided by ATS, in particular the invoicing and debt collection service, is integral to the success of his business. “Apart from taking away the headaches of chasing payments in what can be a challenging financial climate, this service ensures a steady cash flow for my business and peace of mind for my family.”
ATS create the freedom you need to drive your business… ATS have employed a team of dedicated operational and administrative staff to ensure each franchise business runs smoothly. The administrative team handle all aspects of administration – from data processing and test
report production through to invoicing and debt collection. ATS also prepares Recipient Created Tax Invoices for their franchisees to assist with cash flow management. This leaves ATS’s franchisees free to get on with the most important aspects of their business - servicing existing clients to the absolute best of their abilities and growing their business at a local level. In addition to helping its franchisees, another benefit of ATS having a central support office is the ability to secure and manage large national contracts.
ATS free up your time to focus on the important things… ATS franchisees Megan and Ken Black from Canberra say that the administration support provided by ATS was a major factor that attracted them to the network.
“Being new to business we were looking for the support of a franchise system. With the professional team at ATS’s support office managing client reporting and billing, as well as national tendering for national contracts on behalf of the franchise network, we can focus on providing the very best face-to-face experience in our community. We believe that is what will set us apart from our competition.”
ATS know how to help you develop your business… Recognising the majority of large and multisite organisations procure their services centrally, ATS tenders on behalf of the franchise network for national contracts. Unlike many of its competitors, the ATS support office staff manage the entire sales, scheduling and reporting process for its national clients. The ATS service team liaise
with ATS’s clients to schedule testing services; along with managing the ongoing relationship with ATS’s major national clients. ATS also handle national advertising and marketing, with a sales team dedicated to tendering for national work. Through regular communication with its clients, ATS monitors customer satisfaction by actively seeking customer feedback. This feedback ensures the network continually improves its service delivery and customer satisfaction promises. Franchisees service ATS managed clients in addition to securing clients in their local Designated Marketing Area (DMA). ATS’s DMA’s are huge and provide franchisees the opportunity to grow and develop a strong client base, expand their business to incorporate additional technicians and develop a tangible asset for their future.
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fr a n c h i s o r i n d ep t h : appl i an c e tagg i n g s er v i c es
ATS believe in the right people in the right roles… Chetan Khemlani from Sydney is impressed by the level of service provide by ATS. “I believe that the support provided by the franchisor is imperative to a franchisee’s success particularly in growing their customer base. This has certainly helped me by allowing me to dedicate my time to finding new customers and to providing the best possible service to my existing customers.”
ATS know you need ongoing technical support… Following successful completion of two weeks induction training in Melbourne, ATS franchisees not only receive ongoing operational and administrative support, but they have access to ongoing technical training and ongoing technical support as required. All franchisees benefit from ATS’s continual improvements to its testing equipment, data capture and reporting systems. As registered electrical contractors ATS not only engage a team of qualified electricians, but is headed up by a qualified electrician. As a result, all ATS franchisees benefit from the experience of over 30 years specialist experience in the electrical industry. ATS’s electrical expertise is second to none, and this ensures ATS are continually regarded as the premier electrical safety services provider in Australia and the experts in the industry. ATS was also a founding member of the National Electrical Safety Testing Association, with General Manager Sarah Allen a member of the committee.
“We believe in the honesty and integrity of our business – our family business – and the family businesses of our franchisees.”
Don’t just ask us… ATS was a past recipient of the Franchise Council of Australia’s Emerging Franchisor of the Year. Founders Sarah and Ainslie Allen were delighted with the recognition this award brought to the entire team – from franchisees through to the support office staff. “We believe in the honesty and integrity of our business – our family business – and the family businesses of our franchisees. “We are passionate about the services we offer, and we are determined to help our franchisees grow profitable, sustainable businesses. We are enormously proud of their successes and we see this as the hallmark of our brand as a leading franchisor.” Sarah Allen says that the award was recognition of all their hard work and their ongoing commitment to supporting the
franchisees through best practice business operations. “To receive this award from the highly respected Franchise Council of Australia, and beat retail systems for the award, is testament to the quality of our network and shows what ‘man and a van’ service franchises can achieve.” Tim MacKinley, one of ATS’s Queensland based franchisees was also the recipient of the Franchise Council of Australia award for Franchisee of the Year 2013. “My ATS business has been terrific for my lifestyle. I was looking for support when establishing my business and the way ATS assisted me in managing my cash flow was a real benefit. My years with ATS have been excellent – second
to none – and winning the award really recognises that. I can only hope more ATS franchisees will receive that recognition.” ATS are seeking franchisees that have a passion for safety, a friendly and flexible nature, a commitment to exceptional customer service and a desire to grow a profitable and successful business. For further information on Appliance Tagging Services please visit our website or contact Steve Wren on: T: 1300 287 669 E: steve@ats.com.au W: www.appliancetaggingservices. com.au/franchise.
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pr o fi l e : h y p ox i
WELCOME TO THE FUTURE HYPOXI Australia launched its first studio in Sydney, Australia in 2005 and health and image conscious Australians quickly embraced the concept. The HYPOXI network has since grown to 84 studios across the country, and HYPOXI Australia is proud to celebrate its 10 year anniversary this year.
method. Since launching in the European market in 1997, HYPOXI has helped people fine tune their bodies, expanding its presence to more than 50 countries.
In 2012, Goodlife Health Clubs, one of Australia’s largest and most successful full service health club chains, piloted an in-club HYPOXI studio to offer a premium, targeted weight loss service to its members. Based on the success of that first studio, Goodlife developed an in-club studio concept and through its parent company, the ASX listed Ardent Leisure Group, acquired the exclusive distribution rights for HYPOXI in Australia and New Zealand. HYPOXI Australia now oversees and is looking to grow the national network of HYPOXI studios with strong independently owned franchised studios.
Completing on average, a four week programme, with 12 dual sessions, clients can lose a dress or pant size in the core area targeted.
TARGETED FAT BURNING Developed by esteemed Austrian sports scientist, Dr. Norbert Egger, a pioneer in the use of weight loss and compression technology, HYPOXI is a globally proven and trusted exercise and targeted weight loss
HYPOXI combines low impact exercise, healthy nutrition and vacuum and compression therapy to target stubborn fat in problem areas. Scientific studies have proven HYPOXI to be up to 3 times more effective than traditional exercise at targeted fat burning. A one on one experience, clients undergo an initial consultation and assessment and are introduced to the technology. Based on a number of factors such as age, fitness level, skin tone and texture, muscle density etc a personalised programme, incorporating 30 minute treatment sessions, is prescribed based on the client’s core problem areas.
JOIN THE GROWING NETWORK Under Ardent’s ownership and investment in the brand, the HYPOXI network has experienced a phase of rapid growth, cementing the brand’s presence as a leader in the targeted weight loss sector. Franchisees are considered to be business partners and must possess a passion and genuine desire to help people. No formal qualifications from the health and beauty industry are required as all business and HYPOXI product training is provided. Franchisees come from a variety of professional backgrounds. Each franchisee’s journey is individually
82 Business Franchise Australia and New Zealand
tailored to them, dependent upon their background, experience and whether or not they have previously owned a business. All prospective franchisees, if they haven’t already, are encouraged to undergo their own HYPOXI journey because seeing first-hand how the technology works and developing that belief in the technology is an essential part of the process. By undergoing their own HYPOXI journey, each franchisee has their own story to share when they open their studio. There are two different franchise options available, a studio within a fitness centre or clinic or a standalone HYPOXI studio. A standard HYPOXI studio concept which typically consists of 3 HYPOXI devices as a starting point, appeals to many prospective franchisees because it’s low on staff overheads as the owner/operator can operate the business on their own.
GOING STATESIDE Due to the success of the Australian network, Goodlife now holds the exclusive distribution and franchise rights to North America and Canada, and is taking its HYPOXI studio concept to the USA. HYPOXI USA will open its first two studios in Scottsdale and Phoenix, Arizona in October 2015, with plans to then launch its HYPOXI franchise concept nationwide. In addition to independent franchise operators, HYPOXI USA will target health club chains who are looking to add a premium point of difference or convert underutilised club floor space into a profitable studio. For more information contact: W: www.hypoxi.com.au/start-a-franchise
Give yourself the technological advantage and invest in a globally recognised brand and studio concept. The HYPOXI-Method combines low impact exercise with advanced technology and healthy nutrition to target stubborn areas. HYPOXI is a simple, low cost, low staff business model that delivers strong revenue opportunities for franchisees and measurable results for clients.
HYPOXI.COM.AU/START-A-FRANCHISE Business Franchise Australia and New Zealand 83
e x pert a dv i c e
are two locations better than just one? If two locations are better than just one, then are three or four better still?
84 Business Franchise Australia and New Zealand
When an entrepreneur starts a new business they usually concentrate on one location, and growing that site to its maximum potential. Franchising brings a different dimension to the growth opportunity with a multiple-unit option. Many franchise operations are built on the premise that a franchise owner will automatically gravitate to extra units or, in fact, even acquire several unit locations at the outset. Not all franchises, however, are created equal - some offer that multi-unit growth opportunity, whereas others are strictly a one-location venture. Territory is usually the overriding factor that determines whether extra units are applicable or not. When you look into the world of franchising, be it a single unit or multiple units, there are always some very specific ‘due diligence’ areas that you need to cover. They cover topics such as finance, management, territory and market conditions. Reviewing all of these, and other up-front considerations is a must for a would-be franchisee. If at the outset you are considering a multi-unit opportunity, then these due diligence items take on an extra level of review. From the finance point of view, it is almost certain that the entry cost for several units will be greater than just one. While there may be advantages in buying several units at the outset - in as much as you can negotiate a better franchise fee - if you are looking at a ‘store-front’ type franchise, then
“For potential franchisees looking at a single unit operation, we would always advocate that they project their franchise forward when in the planning stage to ensure that they have adequate capital for the growth that they expect in the near future.”
“One of the main areas for review in a multiunit startup - or even a situation where you add on units over a period of time - is that of management.” David Banfield | President | the interface financial group
your build-out expenses will certainly escalate. Likewise, working capital requirements will be that much higher. For potential franchisees looking at a single unit operation, we would always advocate that they project their franchise forward when in the planning stage to ensure that they have adequate capital for the growth that they expect in the near future - when dealing with multi-units, that advice is compounded.
offers a level of comfort for these situations, as franchisors that offer multi-location opportunities have all gone through the learning curve with their franchisees in the past. This translates into a proven formula that the franchisor can bring to the table to assist with rapid multiple location growth.
When considering multiple startups, the issue of territory and accessibility should be thoroughly explored. While the franchisors will easily be able to advise on availability of specific territories, from the franchisees point of view they all need to be easily accessible. Time spent travelling from location to location is usually not profitable and, as such, needs to be well-managed at the outset.
We talked earlier about financial planning to ensure that you always have adequate resources to cover your growth. Growth may come from existing units, or you may have the opportunity to add or acquire units to your existing base. This again represents a potential exponential growth opportunity, and one which may not repeat itself. If other units become available in your area, you will almost certainly want to have the right of first refusal from the franchisor to allow you to consolidate your operations.
One of the main areas for review in a multiunit startup - or even a situation where you add on units over a period of time - is that of management. In a franchise environment, whether you have one unit or five or ten units, there is always only one franchisee. That franchisee is the owner and operator of one or more units. The area to review in this regard is how do you, as one individual owner, manage and control several units that are geographically distant from each other.
Working in a multi-unit environment is clearly very different from a single unit opportunity and, as such, requires that added level of up-front review. Likewise, the multiunit operation should yield a higher income level for the franchisee - the fact that it is a franchise with a proven history could also bring on the revenue stream in a shorter time frame than in a conventional non-franchised startup.
The answer would seem to be that you need to build a solid and very reliable management team. In a one-unit startup the process is usually a natural evolution, with the franchisee working in the business to get it started, and then gradually delegating more and more authority to staff members as is appropriate. As we say, that is a ‘natural’ process but not necessarily one that can be replicated if you are trying to open five stores all at the same time.
One unit may be good, two or more may be even better - it all depends on the overall game plan and the lifestyle that the potential franchisee is looking to achieve.
Clearly an entrepreneur taking on this type of commitment needs to thoroughly review the available human resources to ensure that there is solid and well-trained management in place at each location. Franchising again
David Banfield is the President of The Interface Financial Group, a position that he has held for over 20 years. He has been instrumental in starting Interface as a franchise opportunity and building it to its current international status. Prior to his involvement with Interface, he worked extensively in the banking, credit and factoring financial service areas. www.interfacefinancial.com
Business Franchise Australia and New Zealand 85
e x pert a dv i c e
make the most of your
are two conference locations better experience than just one?
If two locations are better than just one, then are three or four better still? “Don’t be afraid to explore sessions outside of your comfort zone; you never know what key piece of information you might learn.” Matthew Jonas | President | TopFire Media
Attending franchise or industry conferences can be a Catch 22. On one hand, these events offer unique opportunities to connect with prospective clients, business partners, other franchisees, peers and industry leaders. But on the other hand, they can take valuable time away from important daily activities within your office. Because of that, it’s absolutely essential to make the most out of your time spent at conferences, trade shows, and events.
Prior to the Conference Planning ahead is essential in getting to know
the conference agenda – including what events are scheduled and which guests are slated to attend. If this is your first conference, a lot of hosts will be welcoming and may often host a first-timers briefing. Make sure you have time built into your schedule if this is an option. It is a great way get the “low-down” on things as well as it gives you the opportunity to meet other participants who are new to the event and looking to form new relationships. Preparing ahead of time will also help you plan your schedule around those sessions that are available and best suited for you, and allow you to build time to connect with important contacts while there. Chances are there will be an abundance of sessions to choose from at the conference. It’s important to take advantage of the sessions. But even more important, you must choose the sessions wisely. Think about the topics that interest you, as well as ones that will provide you the most value. When you’re deciding on which ones to attend, make sure you’re allowing yourself a range of topics, skill-building sessions, and social events. Don’t be afraid to explore sessions outside of
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your comfort zone; you never know what key piece of information you might learn. Some other important things to keep in mind when planning to attend events is to always pack comfortable shoes, and to bring plenty of business cards. And don’t forget to consult with your marketing team or agency beforehand regarding talking points. You only get one chance to make a great first impression — you can never be too prepared.
At the Conference When you arrive at the conference, try to make yourself stand out from the crowd. Most industry events will feature hundreds and thousands of exhibitors so it’s important to optimise your visibility before and while you attend. Don’t spend all your time outside of conference sessions using your phone or immersed in reading material. If potential clients, suppliers or business partners can’t see you, then what’s the point of you being there? By looking open and engaged, you are more approachable and more likely that someone will engage you in conversation. Additionally,
“You only get one chance to make a great first impression — you can never be too prepared.”
if you are exhibiting at an event, having professional and approachable representatives at your booth, good quality materials and hand-outs, along with a compelling call-toaction (an incentive for people to provide you with their contact information) can advance your visibility to the next level. While at the conference, make sure you are networking effectively. This is an essential first step in building strong and lasting relationships. Not every conference or event will offer you unlimited networking opportunities. However, more than likely, each one will present you with the opportunity to meet some important figures in your industry. Don’t be afraid to ask questions or hang around at the end of a session to say hello and to grab business cards. If you don’t get a chance to ask your question in person, this is a great opportunity to collect information for later follow-up. Connecting with the right people can help form partnerships that can be invaluable in helping you accomplish your short- and longterm business goals.
After the Conference What happens after the conference is just as important as what happened before and during it. One of the best practices you can implement when attending conferences is establishing a follow-up protocol. The purpose of you attending these events is to learn and network so if you don’t reconnect once you return home, you risk losing that lead. A small acknowledgement of your meeting the person, even a reference to something you talked about, can go a long way in establishing a relationship. But keep in mind, the week following a conference is very busy for anyone who attended, so be respectful of their time and plan your connection accordingly. Additionally, keep your notes and information from the sessions and seminars and organise them in an easy accessible way. Review your notes to see what can be referenced or reinforced now that you are back at your office. After a successful conference, you have undoubtedly gained a lot of new information, inspiration, and networking contacts to help
you build business. Yet, don’t forget that one of the most beneficial things to do after an event is to share with your colleagues. If available, you can send a video recording of the sessions you thought were beneficial; or you can give a presentation summarising the event at your next staff meeting. Plan ahead, work your contacts, and share your newfound knowledge with your team. If you manage event planning, attendance, and exhibiting properly, you should find yourself continuing down the path toward success. Matthew Jonas is President of TopFire Media and a digital marketing strategist with over a decade of in-depth experience in SEO & PPC, social media publishing, conversion based marketing, inbound marketing, sales management, and online lead generation. Matthew has built a career dedicated to delivering an integrated marketing approach that achieves client success and long-term relationships. www.topfiremedia.com
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f r an c h i s e asso c i at i o n o f n e w z e a l an d
2016 Conference
Trinity Wharf Hotel Tauranga 4-5 August
The 2016 Franchise Association Conference will be held for the first time, in Tauranga, at the unique Trinity Wharf Hotel located on and over the harbour with a relaxed ambience and waterfront dining. Tauranga is New Zealand’s fifth largest city and home to an estimated 125,000 people. The city sits right on the water’s edge and is well-known for its blue skies, warm climate, sparkling harbour and relaxed lifestyle. Many national and international businesses are based here, and the bustling Port of Tauranga is the country’s largest export port. The region has much to offer with its stunning beaches, outdoor activities, wineries, arts and cultural experiences. The Franchise Association of New Zealand’s conference will bring together the franchise community over two days to network, exchange ideas and interact with other systems and service providers; catch up on industry trends and hear what experts in the field of franchising have to say. Conference registration will include invitations to two social events where delegates can relax, recharge and enjoy their surroundings. The theme for this year’s conference is ‘Building Your Brand’ and the conference will open with a presentation by Chris Brown, NZ Director of Marketing for one of the world’s leading franchise brands McDonald’s. A great opportunity to learn from the masters of franchising! Following on from Chris,
88 Business Franchise Australia and New Zealand
The Trinity Wharf Hotel will be the base for the conference sessions, however for the two social occasions there is a real treat in store. attendees will hear from an array of talented speakers, both local and international. Should energy levels dip, look out for Bruce Ross from Ignite Business Leadership. Bruce is sure to fill the room with energy as he shares his ‘Inside Out’ approach to dynamic leadership, focusing on how higher energy levels impact on performance. In this session it is not just about theory, he will show you how! Afternoon workshops continue to be popular and provide delegates with an opportunity to drill down on some specific areas of interest. Smaller groups made up of like-minded individuals, facilitated by an industry expert, provide a valuable insight into the world of franchising. The Trinity Wharf Hotel will be the base for the conference sessions, however for the two social occasions there is a real treat in store. Lord of the Rings fans will revel in their very own Middle Earth adventure, with a visit to Hobbiton. In the surrounds of the Green Dragon pub and Hobbiton movie set you will enjoy a Hobbiton style evening of fun, games, socialising and a memorable feast.
Lord of the Rings fans will revel in their very own Middle Earth adventure, with a visit to Hobbiton.
Conference will conclude on the evening of Friday 5th August with A Masquerade Ball and Gala Dinner at the Mills Reef Winery, an award-winning Tauranga landmark situated on 20 acres of beautifully landscaped grounds with stunning rural vistas and relaxed surroundings. So if you are keen to progress in the franchise business and network with like-minded people who are happy to share their experiences and challenges plus soak up new ideas and hear the latest happenings in the industry, the 2016 FANZ Conference is not to be missed. Registrations are open now at www.franchiseassociation.org.nz/event
A Masquerade Ball and Gala Dinner at the Mills Reef Winery.
Business Franchise Australia and New Zealand 89
h ot to pi c s
Behind the
headlines Senate inquiry recommends franchisor responsibility for franchisees’ workers The final report of the Senate Standing Committee on Education and Employment’s inquiry into temporary work visa holders has recommended that the Franchising Code of Conduct be changed to include shared responsibility for franchisors where franchisees underpay their workers. The recommendation in the report A National Disgrace: The Exploitation of Temporary Work Visa Holders makes specific reference to the widespread wage fraud found in up to two thirds of 7-Eleven outlets in Australia, where franchisees deliberately underpaid foreign workers on student visas, then threatened to have them deported if they complained. Although a number of the report’s 33 recommendations make reference to the 7-Eleven scandal, Recommendation 26 specifically recommends changes to the Franchising Code in direct response to the issues arising from 7-Eleven. Specifically, the recommendation requests that the Federal Treasury and the Australian Competition and Consumer Commission (ACCC) review the Franchising Code of Conduct with a view to determine whether there is scope to impose some responsibility on the franchisor for breaches of their franchisees’ compliance with workplace laws. The report also recommends that the Code review consider the possibility of franchisors terminating franchise agreements without notice where they have reasonable grounds to believe that serious contraventions of the Fair Work Act have occurred. The report has also recommended that both the resources and powers of the Fair Work Ombudsman be reviewed and increased.
90 Business Franchise Australia and New Zealand
2016
FRANCHISE D IRE C T O R Y on sale now! the most comprehensive franchise guide
h ot to pi c s
New 7-Eleven CEO indicates wage fraud not eliminated yet Embattled convenience retail chain 7-Eleven has appointed a new CEO from outside the convenience and franchising sectors who has indicated that wage fraud could still be occuring in the network despite its best efforts to stamp it out. New CEO Angus McKay was appointed on March 18 to replace interim CEO Bob Bailey who temporarily stepped into the role following the resignation of long-term CEO Warren Wilmot in the wake of media coverage following a joint Fairfax/Four Corners report by Adele Ferguson last August about widespread wage fraud in the 7-Eleven network. New CEO McKay was most recently CEO of labour hire firm Skilled Engineering
RFG lays off field support staff in favour of sales roles Multi-brand listed franchisor Retail Food Group (RFG) has made 68 operations staff redundant, but invited them to reapply for roles in its newly-created national sales and performance division, according to a media report. The job cuts were in response to the evolving retail landscape and resources would be redeployed from operations to sales and business mentorship, according to a letter delivered to affected staff quoted by the Gold Coast Bulletin. Sacked staff were encouraged to apply for either a new sales role, or another newlycreated position in RFG’s franchise care centre, which is understood to be a call centre to provide operational support.
Franchise Council appoints former Business Minister as Executive Chair The Franchise Council of Australia (FCA) has appointed former Federal Business Minister and retiring MP Bruce Billson to the newlycreated role of Executive Chairman. The member for the seat of Dunkley in Victoria served as the Federal Minister for
Small Business for two years from 2013 to 2015, and announced his retirement from politics late last year, to take effect from the next federal election due later this year. Billson’s appointment will help raise the public profile of franchising and improve how the sector’s benefits are communicated to the broader community, according to outgoing FCA chairman Michael Paul.
Turnaround and multibranding topics added to Management Forum Turning around a franchise brand in distress and how to operate a multi-brand franchise network are the two latest topics to be added to the program for the annual Franchise Management Forum to be held on July 6 in Brisbane. Pie Face managing director Kevin Waite will provide an insight into the network’s continued turnaround since it was placed into administration a little over 12 months ago, and provide valuable insights into the problems faced by growing franchisors. Also joining the program will be Stan Gordon, CEO and owner Franchised Food Company, which operates six franchise brands including ice cream brands Cold Rock Ice Creamery, Mr Whippy and Trampoline. Waite and Gordon are the latest speakers to confirm for the Forum, an annual professional development event for franchise system founders and leaders to be held in Brisbane on Wednesday July 6. They join existing franchisor leaders Richard Thame (CEO of Fastway Couriers), Paul Robinson (nonexecutive director of VIP Home Services), and Jason Smith, (founder and CEO of Back in Motion, a national physiotherapy franchise). Forum registrations will open next month. For more information about the Forum, see www.franchiseadvice.com.au.
Homewares franchise collapses Earthborn, a small chain of homewares stores based in south east Queensland has collapsed, stranding three franchisees who continue to trade while the company-owned stores around them are liquidated.
92 Business Franchise Australia and New Zealand
Jason Gehrke | Director Franchise Advisory Centre
KFC franchisee sells 42-store group to NZ company A group of 42 KFC outlets in New South Wales operated by the one franchisee has been sold to New Zealand-based public company Restaurant Brands, which operates the KFC, Starbucks and Carl’s Jr brands in New Zealand. The acquisition is the company’s largest outside New Zealand. The owner of the NSW KFC franchises, Stephen Copulos, joins the board of Restaurant Brands once the acquisition is settled at the end of April.
No damages for Subway claimants after they ate the evidence A class action against Subway which alleged the brand’s footlong subs were consistently shorter than the 12 inches implied by the name has been settled with the company agreeing to implement practices for the next four years to ensure its footlong subs are at least 12 inches long, according to a media report. However no monetary claims were awarded to members of the class action “because everyone ate the evidence” according to one of the lawyers acting in the case. An Australian teenager uncovered the substandard sub length issue when they posted a photo on Facebook of a sub alongside a tape measure, which led to a worldwide trend in measuring subs. www.franchiseadvice.com.au
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pr o f ess i o na l s er v i c es l i st i n gs
Freelease Copiers Pty Ltd
Offices in Sydney, Brisbane & Melbourne P 1800 63 63 44 Contact Tim Holland E info@freeleasecopiers.com.au www.freeleasecopiers.com.au COPIER AND PRINTER LEASING WITH NO LOCK-IN CONTRACTS Starting a new business or franchise takes a lot of commitment but there are some things you should not have to commit to. Most suppliers of copiers and printers want you to sign up for 5 years, in that time they can change whatever they want , they can, it’s their contract. Here at Freelease Copiers we don’t believe in contracts. We should good enough for to want to keep us. By just charging per page, we have the same aims; to have a reliable, working printer. You supply the paper and we supply everything else • Free Toshiba E-Studio Multifunction Printer/ Copier/ Scanner • All toner, maintenance and consumables included • A4/A3 Printing & copying • No repair bills ever • No price rises ever • All with no lock in contracts • Network assistance (we are not a network company but we will do our best to help, for free) • Free upgrades as machines wear and technology changes Also • No financial references required • Any options: fax, staple and fold - at no extra cost We have machines ready for immediate delivery, feel free to call or visit the our webpage at www.freeleasecopiers.com.au
Ivan Poole Lawyers
HARMANS LAWYERS
485 Papanui Road, Christchurch P +64 3 352 2293 F +64 3 352 2274 Contact Mark Sherry or Alan Prescott E mark.sherry@harmans.co.nz www.harmans.co.nz If you’re considering buying a franchise you need the legal confidence that the agreement is fair and ethical. Getting the right legal advice early is essential, and that’s where the knowledgeable Harmans team of franchising experts can help. Our extensive experience in all aspects of franchising, across a wide range of industries, will provide you with the advice you need to more forward with confidence. We have acted for franchisors and franchisees over many years and know the advantages of franchising and pitfalls to watch out for. Our Franchising Team can assist with a full range of franchise related services, including: - Legal rights and obligations under franchise documentation - Business structures and asset protection structures - Financing issues - Employment issues and health and safety - Lease arrangements and agreements - Terms of trade - Dispute resolution We are members of the Franchise Association of New Zealand
Krneta Building Surveyors
PO Box 10857 Southport QLD 4215 P 07 5591 2522 F 07 5591 2511 Contact Peter Thelwell E pt@ivanpoolelawyers.com.au www.ivanpoolelawyers.com.au A specialist Franchising and Intellectual Property legal and consulting firm, providing comprehensive advice for Franchisors from conception through to recruitment of Franchisees and ongoing management of the Franchise System. Clients receive expert, cost-effective advice on a collaborative basis with the firm taking great pride in its long term relationships with Franchisors. Expert advice and assistance is also provided to Franchisees Buying & Selling businesses as well as in relation to dispute resolution.
Suite 5, 39A Glenferrie Road, Malvern VIC 3144 P (03)9509 3176 F (03)9509 2146 Contact Nathan Krneta E nathan@krneta.com.au www.krneta.com.au Krneta Building Surveyors is a national consulting firm, consisting of specialist certifiers and compliance advisors providing a range of professional services in a variety of sectors to assist in the delivery of successful projects. The services for Franchisors consist of obtaining building permit approvals, certification and liquor licence assessments for tenancy fitouts and new developments nationally.
94 Business Franchise Australia and New Zealand
FCA
Join Become a Franchise Council of Australia Member Membership of the FCA is voluntary, and open to any organisation or individual involved in the franchise sector, including franchisors, franchisees, lawyers, accountants, banks, consultants, academics, publishers - plus many others. BeneďŹ ts of Membership Representation of franchising sector perspectives to government A voice in your association Franchising public relations Excellence in Franchising Awards Education National Franchise Convention Regular industry events FCA branding Website directory advertising Enquiries and Further Information E info@franchise.org.au W www.franchise.org.au Business Franchise Australia and New Zealand 95 FCA_Membership Ad.indd 1
19/10/2015 4:34 pm
l i st i n gs
FRANCHISE 7-ELEVEN STORES PTY LTD 357 Ferntree Gully Rd, Mt Waverley VIC 3149 Ph: 03 9541 0711 Website: www.franchise.7eleven.com.au
APPLIANCE TAGGING SERVICES 80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au
BURGER URGE Level 1, 4/15 Lamington Street, New Farm QLD 4005 Ph: 0468 989 005 Email: matt@burgerurge.com.au Website: www.burgerurge.com.au
CHEM-DRY AUSTRALIA Unit 3, 30 Park Road, Mulgrave NSW 2756 Ph: 02 4587 6300 Fax: 02 4587 8733 Email: info@chemdry.com.au Website: www.chemdry.com.au
CLEAN GREEN STRATA Unit 8/ 41-43 Higginbotham Road, Gladesville NSW 2111 Ph: 1300 66 11 82 Fax: 02 9808 5498 Email: chris@cleangreenstrata.com.au Website: www.cleangreenstrata.com.au
CREMA ESPRESSO 16B Harvest Court, Southport QLD 4215 Ph: 07 5532 7727 Fax: 07 5526 4896 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au
CUTSHOP 67H Elizabeth Knox Place, Mt Wellington, Auckland, New Zealand Ph: +64 9 666 632 Fax: +64 9 929 3385 Email: andre.hofer@cutshop.com Website: www.cutshop.com
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
CONVENIENCE RETAIL & FUEL
620+
FCA, AACS
(site specific – part of Min. Investment)
Average of $775,000
ELECTRICAL TEST AND TAG
47
FCA
$35,000
$47,000 + GST + Vehicle
DANGEROUSLY GOOD BURGERS
16
Hogwarts School of Witchcraft and Wizardry / FCA
$30,000
$300,000
CARPET AND UPHOLSTERY CLEANING
141
International Franchise Association (IFA)
$16,500 + GST
$39,950 + GST
STRATA CLEANING, GARDENING MAINTENANCE SERVICE
4
FCA, SCA
$40,000 $60,000
$40,000 - $60,000
PREMIUM CAFÉ FRANCHISE
13
Franchise Council of Australia
CABINETRY AND CUSTOMISED CUTTING SERVICES
2
FANZ
$40,000
$800-$840K
PIZZA FRANCHISE
1900+
-
$250,000
$300,000 $600,000
KITCHEN, BATHROOM & BEDROOM REMODELLING
71+ worldwide
FCA & FANZ
From $60,000
$75,000
AMAZING KITCHEN FACELIFTS
11 in NZ
IFA, FANZ, FCA
NZ$75,000
-
AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE
21
Franchise Council of Australia
$50,000 + GST
$500,000 $800,000
COURIER SERVICE
650+
FCA & FANZ
From $25,000 + GST
$25,000 + GST
COURIER SERVICE
250+
FCA & FANZ
$10,000
$10,000
SME CASH FLOW SOLUTIONS
26
FCA
$40,000
-
PERSONAL TRAINING & FITNESS
8
FCA, Fitness Australia
$29,000 inc. equipment & marketing
$29,000
TILE & GROUT RESTORATION
-
FCA
-
$39,950 + GST & Vehicle
HAIR & BEAUTY – RETAIL & SERVICE
140
FCA
$66,000 + GST
$390,000 incl. stock, for Greenfield sites
HOME ORGANISING FRANCHISE
1
AAPO
$14,990
$24,990
TARGETED WEIGHT LOSS
77 (21 Franchisee and 56 Licensee)
-
$25,000 ex GST
$136,700 ex GST
Dependent on Site $50,000 + GST conditions $300K Incl. Training $500K
DOMINOS PIZZA ENTERPRISES LTD Australia: www.dominosfranchise.com.au or call the Franchising Team on 1300 131 New Zealand: www.dominospizza.co.nz or call the Franchising Team on 0508 4Franchise
DREAM DOORS AUSTRALIA 26A Alfred Street, Milsons Point, Sydney NSW 2061 Ph: 08 8351 8588 Email: cam@dreamdoors.com.au Website: www.dreamdoors.com.au
DREAM DOORS NEW ZEALAND 4 Ryalls Way, Lake Hawea 9382 Ph: 0800 437 326 Email: franchise@dreamdoors.co.nz Website: www.dreamdoorskitchenfranchise.com
FASTA PASTA PTY LTD Level 1, 137 The Parade, Norwood SA 5067 Ph: 08 8304 8600 Fax: 08 8332 8389 Email: franchise@fastapasta.com.au Website: www.fastapasta.com.au
FASTWAY COURIERS AUS Level 9, 491 Kent Street, Sydney NSW 2000 Ph: 1300 FASTWAY Fax: 02 9264 4966 Email: fso@fastway.com.au Website: www.fastway.com.au
FASTWAY COURIERS NZ Shed 5, Level 1, Lever Street, Ahuriri, Napier 4110 Ph: 0800 4 FASTWAY Website: www.fastway.co.nz
FIRST CLASS CAPITAL Level 12, 50 Margaret Street, Sydney NSW 2000 Phone: 02 9098 0860 Email: info@firstclasscapital.com.au Website: www.firstclasscapital.com.au
FITNESS ENHANCEMENT PERSONAL TRAINING 20 Lawrence Drive, Nerang QLD 4211 Ph: 1800 PT for U / 1800 783 678 Email: franchise@fitnessenhancement.com Website: www.fitnessenhancement.com
GROUT PRO AUSTRALIA Ph: 07 5515 0119 Fax: 07 5500 3716 Email: mail@groutpro.com.au Website: www.groutpro.com.au
HAIRHOUSE WAREHOUSE Level 1, 605 Doncaster Road, Doncaster VIC 3108 Ph: 0451 370 060 Fax: 03 9234 2266 Email: franchising@hairhousewarehouse.com.au Website: www.hhwhfranchising.com.au
HOME SORTED! PO Box 197, Keilor East VIC 3033 Phone: 1300 30 11 77 Email: franchise@homesorted.com.au Website: www.homesorted.com.au
HYPOXI AUSTRALIA PTY LTD 7 Blackfriars Street, Chippendale NSW 2008 Ph: 02 9699 3011 Email: kellie.wilson@hypoxi.com.au Website: www.hypoxi.com.au
96 Business Franchise Australia and New Zealand
FRANCHISE JIM’S ANTENNAS National Office-25 Rocklea Drive, Port Melbourne VIC 3207 Ph: 131 546 Email: getstarted@jimsantennas.com.au Website: www.jimsantennas.com.au
JIM’S POOL CARE 48 Edinburgh Road, Mooroolbark VIC 3138 Ph: 131 546 Email: info@jimspoolcare.com.au Website: www.jimspoolcare.com.au
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
ANTENNA & HOME THEATRE INSTALLATION
150
ADTIA, FCA
$59,000
$59,000
MOBILE POOL SHOP & POOL SERVICE
85
FCA
$66,000
$66,000 + Vehicle
HAIRDRESSING
193 across Australia & NZ
FCA
$18,000 $35,000
$80,000 - $240,000
AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE
70
FCA & FANZ
-
$300,000+
RENT TO OWN APPLIANCES & ELECTRONICS
3
-
$60,000 ex GST
$100,000
FIXINGS AND FASTENER TRADE SALES
3
-
-
$350,000 inc. stock
SMOOTHIES, JUICE BAR, YOGHURT
-
1
MOBILE TOOLS AND EQUIPMENT FRANCHISE
170+
FCA / FANZ
Start-up cost from $50,000
-
BEDDING RETAILER
78
Franchise Council of Australia
$50,000
$450,000+
SAFETY & DECORATING TO ALL INSIDE & OUTSIDE CONCRETE
80
-
$15,000 (Licence Only)
$75 P/W
FISH & CHIPS AND SEAFOOD DINER
3
-
$40,000 + GST
$200,000 (Dependent on Site)
PROVIDES UNIQUE SPOT FACTORING PROGRAMME
100+ worldwide
FCA, IFA, CFA, Irish FA
$24,500
$50,000+
CHOCOLATE LOUNGES, PAVILIONS, BARS
24 worldwide
FCA, BFA
$40,000
$200,000 $500,000
RETRO-FIT DOUBLE GLAZING
2
AWA
$40,000
Varies depending if vehicle needed
REAL ESTATE PHOTOGRAPHY & MARKETING SERVICES
30 outlets
FCA
$49,000
$49,000
DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS
1100
FCA
$16,000 + GST
$25,000
FENCING & HOME MAINTENANCE
5
MBA, FCA
POA
POA
RETAIL / TELECOMMUNICATION
160
-
Nil
$70,000 - $150,000
DI BELLA COFFEE MOBILE ESPRESSO VAN
30
FCA, Australian Franchise Registry
Included in turnkey purchase price
$119,500 + GST (incl.FAST TRACK program) Turnkey business.
MEXICAN RESTAURANT FRANCHISE
118
FCA
$35,000 $40,000 ex GST
From $450,000 ex GST
JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 02 9527 5444 Fax: 02 9527 5144 Email: maree@justcuts.com Website: www.justcuts.com
LA PORCHETTA 192 Mahoneys Road, Thomastown VIC 3074 Ph: 03 9460 6700 Fax: 03 9460 3099 Email: franchising@laporchetta.com.au Website: www.laporchetta.com.au
RENT WITH STYLE PO Box 2960, Rowville VIC 3178 Ph: 1300 73 23 83 / 0402 289 668 Fax: 1300 73 23 03 Email: admin@rentwithstyle.com.au Website: www.rentwithstyle.com.au
SCROOZ Unit 1, 709 Gympie Road, Lawnton QLD 4501 Ph: 1300 794 499 Fax: 07 3829 1283 Email: franchising@scrooz.com.au Website: www.scrooz.com.au
SMOOTHIE FACTORY AUSTRALIA L54, 111 Eagle Street, Brisbane QLD 4000 Ph: 1300 880 382 Email: franchise@smoothiefactory.com.au Website: www.smoothiefactory.com.au
SNAP-ON TOOLS PO Box 6077, Seven Hills NSW 2148 Phone: Aus: 1800 762 766 NZ: 0800 762 766 Email: Sota.franchise@snapon.com Website: www.snapontools.com.au
SNOOZE PTY LTD 21a Shierlaw Avenue, Canterbury VIC 3126 Ph: 0423 077 844 Fax: 03 9888 6327 Email: bettina.davis@snooze.com.au Website: www.snooze.com.au
SPRAY PAVE AUSTRALIA GPO Box 501, Green Acres SA 5086 Ph: 1800 688 888 Fax: 08 8266 5360 Email: spraypave@senet.com.au Website: www.spraypave.com
STEVE COSTI’S FAMOUS FISH 3/346 Main Street, Mornington VIC 3931 Ph: 03 5976 8614 Email: franchising@famousfish.com.au Website: www.famousfish.com.au
THE INTERFACE FINANCIAL GROUP Level 3, 2 Brandon Park Drive, Wheelers Hill, VIC 3150 Ph: 1300 957 900 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.com.au
THEOBROMA LOUNGES, PAVILIONS, BARS 3A Kia Crt, Preston VIC 3072 Ph: 03 9480 1030 Fax: 03 9480 1035 Email: franchising@theobroma.com.au Website: www.Theobroma.com.au
THERMAWOOD RETRO-FIT DOUBLE GLAZING PO Box 1007, South Melbourne VIC 3205 Ph: 04 555 55 330 Email: info@thermawood.com.au Website: www.thermawood.com.au
TOP SNAP 208/40 Yeo Street, Neutral Bay, Sydney NSW 2089 Ph: 1300 TOP SNAP Email: franchise@topsnap.com Website: www.topsnap.com
V.I.P. HOME SERVICES AUSTRALIA Offices in each State Ph: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au
V.I.P. HOME SERVICES FENCING & HOME MAINTENANCE PO Box 686, Mount Martha VIC 3934 Ph: 0402 898 555 Email: joinus@vipfandhm.com.au Website: www.vipfandhm.com.au/join
VODAFONE HUTCHISON AUSTRALIA 40 Mount Street, North Sydney NSW 2060 Email: dealer.recruitment@vodafone.com.au Website: www.vodafone.com.au/careers/select-dealer-recruitment
XPRESSO MOBILE CAFÉ PO Box 57, Carina QLD 4152 Ph: 1300 655 559 Email: joinus@xpresso.com.au Website: www.xpresso.com.au facebook.com/XpressoMobileCafe
ZAMBRERO Suite 2402, 1 Alfred Street, Sydney NSW 2000 Ph: 1300-ZAMBRERO (1300-92627376) Email: franchise@zambrero.com Website: www.zambrero.com
$40,000 + GST $170,000 - $250,000
Business Franchise Australia and New Zealand 97
a-z d i r ecto ry
business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
7-Eleven 7-Eleven is a global success story with more than 53,500 stores in 18 countries worldwide. 7-Eleven continues to grow, with an average of 6 stores opening in the world every day, and you can be part of this growth by becoming a 7-Eleven Franchisee. As a 7-Eleven Franchisee you will benefit from our position as a market leader in
APPLIANCE TAGGING SERVICES Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? With over 12 years’ experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses.
BURGER URGE Queensland’s fastest growing dangerously good restaurant brand is turning food retail on its head! With a growing number of stores in prime locations throughout Queensland, Burger urge is headed for national expansion and is looking for suitable Franchise Partners to join our growth and success. The Burger Urge brand represents fast, fresh and dangerously good gourmet burgers, which are served in a distinctively vibrant, young and urban environment. At Burger urge, we do not follow a ‘would you like fries with that’ template. We are proud of our unconventional and out-of-
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
convenience retailing. You will be backed by our comprehensive support system. Our system gives you a complete turn-key set up including state of the art POS systems, product innovation and promotion as well as operational support. Visit franchise.7eleven.com.au to view more information, see which stores are available for sale and to determine whether a 7-Eleven franchise is right for you.
No prior electrical experience is required, just a passion for safety and a commitment to growing your business. With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you. ATS were named FCA Emerging Franchisor of the Year 2011 and the FCA National Franchisee of the Year 2013 (less than 2 staff). For further information please contact Steve Wren, National Sales Manager on 1300 287 669, email steve@ats.com.au or visit www.appliancetaggingservices.com.au
the-box approach. As a Burger urge Franchise Partner, you will receive: • Extensive operational and business training • Proven and refined operating systems and procedures • Unique fit-out that is set up and ready for trade • Ongoing support from our senior management and inhouse creative marketing team • Up to 50% finance from ANZ Bank If you have the urge, please contact our Head of Property Matt Manzie on 0468 989 005 or email matt@burgerurge.com.au
Chem-Dry Australia
have the drive and determination to work hard and
Chem-Dry is the world’s largest carpet cleaning franchise, and has been helping Australian’s realise their dream of business ownership since 1986.
enjoy their success.
Our unique, hot-carbonated water extraction method, combined with best in-class products and services, and unparalleled training and support, make it impossible to find a better cleaning franchise opportunity. No experience is necessary, as Chem-Dry provide comprehensive training on all aspects of the business. We are looking for franchise partners that
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Our on-going marketing and operational support will ensure that you are able to enjoy the flexibility and lifestyle benefits that owning your own successful business can provide. If you’re ready to make a clean break with your own Chem-Dry franchise, simply fill out the information form on our website, or call our franchise business info line on 1800 243 637.
clean green strata Strata Cleaning and Strata Garden Maintenance Franchises Why Clean Green Strata? • We supply the customers from the 1st minute you start • Earn a guaranteed income with work scheduled year round to suit your situation • Work flexible hours to suit your life
Crema Espresso The Crema Espresso coffee franchise provides premium coffee and light meals with a focus on personalised service. Established on the Gold Coast, Crema brings together community life with a bright sophisticated shop design. Our extensive training and systems are in place to ensure the best support for Franchisees. Crema Espresso provides a business with supervision and consulting readily available. This includes everything from full operation manuals, point
Cutshop Cutshop is New Zealand’s first and only specialist “cut-to-size” contract service provider able to work with a wide variety of non-ferrous materials. The Cutshop concept of cut, edge, drill and deliver sheet material for cabinetry, bespoke furniture, shop fit-outs, customised cuts and the DIY market is a proven business concept. Using advanced CNC router technology, software, the latest bandedging technology and proven systems, Cutshop is providing its customers the job finish they want.
DOMINO’S PIZZA Domino’s Pizza Enterprises holds the exclusive master franchise rights for the Domino’s brand and network in Australia, New Zealand, Belgium, France, the Netherlands, Japan and Germany. Domino’s Pizza Enterprises now extends across seven countries, with more than 1900 stores and is the leading international Domino’s franchise. New franchises are supported through every step of the process including site selection,
DREAM DOORS australia A dream opportunity Do you dream of working for yourself and earning a stable income? Make it a reality with Dream Doors – one of Australia’s fastest growing franchises. You don’t need any previous experience. It’s easy and affordable to set up your own franchise, backed by comprehensive support and a proven business model with over 14 years of international success. Be your own boss The unique Dream Doors ‘facelift’ concept makes
• No weekend or night work so more time with the family • Fully supported by energetic, experienced management team • Recession proof industry • Earn above average returns for the cleaning & gardening industry For more information call 1300 66 11 82 or email chris@cleangreenstrata.com.au
of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising. “As coffee lovers we were tired of the same old coffee in dark gloomy cafes. Premium coffee and light meals, like we have in our stores, should be enjoyed in a bright sophisticated café with an atmosphere that creates a laid back, enjoyable meeting place for customers”. Contact: antony@cremaespresso.com.au www.cremaespresso.com.au
With increased demand we are seeking for motivated individuals prepared to employ and manage a production and programming team to achieve above average return on investment. The Cutshop model proves that new Cutshop franchisees can achieve break-even in Year-One and a significant return on investment in Year-Three. Bottom line - the Cutshop business allows the Franchisee to Work for Himself but not by Himself. Call André on +6421879 413 or check our web-site www.cutshop.com
lease negotiation, store fit out, comprehensive preopening training, coordination of suppliers, group purchasing power, store appraisals, ongoing training and support, and marketing promotions. Australia: www.dominosfranchise.com.au or call the Franchising Team on 1300 131 888 New Zealand: www.dominospizza.co.nz or call the Franchising Team on 0508 4Franchise
it possible for Aussies to achieve a ‘new’ kitchen for a fraction of the usual cost, by replacing doors, drawer fronts and benchtops. The market response has been extremely positive, with some of our franchisees achieved $1.0mil in sales in their first year. Call today and make your dream a reality.
ama zing kitchen facelif ts
For more information contact Cam Hadlow on: T: 1 800 373263 E: cam@dreamdoors.com.au W: www.dreamdoors.com.au
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DREAM DOORS NEW ZEALAND
ama zing kitchen facelif ts
You can achieve the freedom you’ve always dreamed of with a Dream Doors Kitchen Franchise in New Zealand or Australia. Whatever your Franchising “Dream” is, this internationally proven Franchise concept has been successfully working in the UK for 16 years with 55 Franchise outlets, for 8 years in New Zealand with 11 Franchise areas and in Australia now with 18 Franchises sold. The need for our business is incredible, with customers all the time commenting that we saved them $1000’s on their kitchen refurbishment.
FASTA PASTA With our authentic Italian background and 30 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative ever-changing menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2012. Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings, this is a great
FASTWAY COURIERS AUSTRALIA
The business is growing very strongly in Australia and New Zealand. We are currently recruiting Franchisees for various parts of Australia and New Zealand. The Dream Doors Franchise business is ideal for partnerships or husband/wife teams or entrepreneurs looking for a middle-market retail opportunity providing a bespoke service to a growing market. Please contact: Derek Lilly, Managing Director del@dreamdoors.co.nz www.dreamdoorskitchens.com +64272135133
opportunity to be part of our winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills. For more information on joining a successful franchise call 08 8304 8600, email franchise@fastapasta.com.au, or visit our website, www.fastapasta.com.au
• Low start up costs
• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change, we’d love to hear from you. Call 1300 FASTWAY or visit us at www.fastway.com.au
• No weekend work
*Conditions apply
business franchise australia and new zealand
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
Run your own rewarding business and take control of your future as a Fastway Courier Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy • Guaranteed income package*
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
FASTWAY COURIERS New Zealand Run your own rewarding business and take control of your future as a Fastway Couriers Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Guaranteed income packages* • Low start up costs • No weekend work
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• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change we’d love to hear from you. Call 0800 4FASTWAY, or visit us at www.fastway.co.nz *Conditions apply
first class capital Small to medium sized businesses face a number of cash flow challenges in today’s buying environment. Offering larger and longer trade credit terms, purchasing greater volumes of stock or even the day to day operating costs all puts cash flow pressure on the SME. First Class Capital is an independent Australian finance company specialising in developing and delivering innovative cash flow funding solutions to the underserviced small to medium sized business.
Fitness enhancement personal training 100% private Personal Training Studios and Mobile Personal Trainers. Over 80% of clients we meet with join and go on to spend an average of over $5,000 with us...and we never have to give away free sessions or free trials to get these clients! Our clients are primarily people who don’t like the Gym scene, or simply don’t have time for it, but know they need to get in shape.
GRoutpro Earn between $50 and $200 per hour and get a high return on investment in the booming Home Improvement Industry with LOW SETUP COSTS & little competition. GroutPro specialises in the after-market care of tiles and grout to homeowners and businesses. Offering a range of professional services from stain protection of new tile and grout installations to our flagship grout “colourseal” application which rejuvenates and recolours old grout saving customers time and money without having to re-tile.
We are a company that embraces technology by providing our solutions through a fully automated internet based system streamlining the process making it very quick and effortless for our clients. Our solutions will help pay for those outstanding invoices, bridge the gap between accounts payable and receivable and even pay that pesky ATO bill. Uniquely we have a solution that will even extend your 30 day trading terms to 6 months where you get paid upfront. www.firstclasscapital.com.au
With mobile and studio franchisees available, and the option to upgrade from mobile to a fully staffed studio at any stage, we offer an ultra-low cost franchise solution with unlimited growth potential. With amazing head office support (we even take and book your new enquiries when you can’t) and exclusive marketing territories so you will never have to compete with fellow trainers, we help you build a rewarding business and a lifestyle to match. Email: franchise@fitnessenhancement.com Website: www.fitnessenhancement.com
Specialists use GroutPro’s own branded range of professional quality products including cleaners, sealers, tile Anti-Slip treatments and shower glass restoration and sealer coatings. This is a complete package to get you up and running in your own business fast. Call us today for more information. Contact: Geoff Biddle Phone: 07 5515 0119 Email: mail@groutpro.com.au Website: www.groutpro.com.au
HAIRHOUSE WAREHOUSE
Hairhouse Warehouse has become a household
Hairhouse Warehouse, Australia’s leading hair & beauty brand, has huge plans for the next few years to expand with 20 new stores planned to be opened around the country.
name in Australia, with a proven business model
We are looking for passionate people who want to own their own business, work for themselves and take control of their own destiny.
that continues to evolve and generate strong returns for franchisees. For more information call 0451 370 060, email franchising@hairhousewarehouse.com.au or visit www.hhwhfranchising.com.au.
HOME SORTED!
processes for operating a successful business.
Home Sorted! is the first (and only) Professional Home Organising Company to launch a Franchise Business within Australia.
If you’re extremely well organised, great at multitasking and an excellent communicator, then you are well on your way to meeting our criteria.
Our organising methods and systems are easily applicable to any household. Demand for our unique service is high and Home Sorted! is now looking for an extremely organised team of Franchisees to help expand our brand nationwide.
No previous experience is required, as we will teach, support and guide you.
Considering our line of work is organising, our business systems offer simple step-by-step
Home Sorted! Is currently seeking interest across all states. Please visit our website www.homesorted.com.au or contact us on 1300 30 11 77 | franchise@homesorted.com.au for more information.
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HYPOXI® Australia Give yourself the technological advantage and invest in a globally recognised health & fitness brand and studio concept. The HYPOXI® Method combines low impact exercise with advanced technology and healthy nutrition to target stubborn areas. HYPOXI® is a simple, low cost, low staff business model that delivers measurable results for franchisees and clients. HYPOXI® Australia (a division of Ardent Leisure) is the exclusive distributor and franchisor of the
HYPOXI® technology throughout Australia and New Zealand; and over the past 10 years has developed a studio network of over 77 company owned and independently owned HYPOXI studios. Prospective Franchisees looking to turn their passion into a profit are encouraged to contact us for a confidential discussion. Contact: Kellie Wilson – Sales Manager, Australian & New Zealand Phone: 02 9699 3011
Jim’s antennas
• No Experience Required
Join Australia’s leading Digital TV & Home Theatre installation specialists.
• Paid On the Road Training
Jim’s Antennas is a division of the Jim’s Group of companies- Australia’s leading home services company with over 3500 Franchisees operating throughout Australia across 38 divisions. With a reputation for excellence in customer service, Jim’s Antennas has an excess of work available across Australia and is looking for self-motivated and enthusiastic people to join the team.
JIM’S POOL CARE MOBILE POOL SHOPS Join one of Australia’s largest franchise systems and reap the benefits of a strong national brand. Owning a Jim’s mobile pool shop means you can earn money from multiple streams. Not only can you charge for your time you can also charge for the lucrative pool items such as chemicals, pool equipment and pool accessories. This means your income is not limited by how many hours you can
business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
JUST CUTS™ Join the largest, most successful hairdressing network in the Southern Hemisphere! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business and marketing coaching, guidance and support. Did you know that most Just Cuts™ Franchise Owners are not hairdressers and just under half own multiple salons? Why? Because our proven systems, support and training allows your Stylists to easily run the business for you.
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• Work Availability Guarantee • Work Where You Want, When You Want • Franchises Available Across Australia Contact Jim’s Antennas today on 131 546 or getstarted@jimsantennas.com.au to find out more
AUSTRALIA AND NEW ZEALAND
and arrange your free trial day on the road.
Alternatively visit our website www.jimsantennas.com.au
work and gives you scope to grow the business to a level that suits you. Another great bonus is our FLAT franchise fee. Yes, our fee is a flat franchise fee system so you can work hard and earn as much as you like and pay the same flat fee with all training and ongoing support included. We have selected opportunities all over Australia so give us a call and come for a ride along. For more information ph: 131546 or visit www.jimspoolcare.com.au
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
Just Cuts™ are also excited to announce our kiosk option! With only 49 sites available Australia wide, you can buy yourself a new lifestyle from just $80,000! Just Cuts™ Franchisees also have exclusive access to our professional retail range made in Europe; JUSTICE Professional™. Contact: Luke Manning 0439 130 499 or maree@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising
LA PORCHETTA La Porchetta is the largest Italian Restaurant Chain in Australia and New Zealand, and love serving quality Italian food with fresh ingredients. The first La Porchetta Restaurant was opened in Melbourne’s Italian hub in 1985, and soon it became renowned as a special place to experience good food, love and a passion for life. Currently celebrating 30th years in business, is now looking to expand the network
rent with style Rent with Style is a proven rental business supplying affordable home appliances, furniture and electronics items. It is easy and very affordable to start your own Rent with Style franchise business. All you need is a phone, computer and vehicle branded to your business and you are up and running...
of franchisees throughout Australia and New Zealand. We are looking for passionate food lovers with a strong work ethic and drive to join our family. You bring the dream and La Porchetta will provide the recipe for success. For more information: T: (03) 9460 6700 E: franchising@laporchetta.com.au W: www.laporchetta.com.au
• You will be helping clients get access to house hold items and technology using a proven rental business model. We Make It Easy For You. How to Start
What You Get
• Franchise Application
• Flexible work hours
• Select your Territory
• Work from home
• Pay $5,000 refundable deposit • Low running costs
• Grab your own territory and start servicing clients immediately.
• Review the legal documents
business franchise australia and new zealand
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
scrooz We’re Australia’s biggest online and multi-channel retailer of premium range fasteners, fixings and consumables for tradesmen, light industry and serious DIY’ers and we’re revolutionising fastener retail. We’re growing rapidly and to meet the high customer demand for our products we’re starting the launch and roll-out our network of Scrooz® Trade Centres across Australia right now. Want to earn some real money and get involved in • A $650 billion dollar industry
Smoothie Factory Smoothie Factory is an internationally-known smoothie and juice bar franchise with existing stores in the US, and international development throughout China, India, and Vietnam through our founder Olympic athlete James Villasana & SF Inc. Founded in 1996 with an emphasis on owneroperator success, approximately 95% of all Smoothie Factory locations are operated by the owner. Benefits of Smoothie Factory Franchise Ownership:
• Mobile business
• Sign & start
• With highly profitable repeat sales of consumables to the trades and DIY industries • Retailing our premium quality Scrooz® branded product range • With National and webstore driven multi-channel sales • Full training and on-going support provided • Outstanding opportunities for early take up We have limited opportunities for highly motivated people looking for a serious business, so to find out more contact us now for an information pack at franchising@scrooz.com.au
scrooz f a s t e n e r s
frozen yogurt shop, and health supplement retail store under one roof • Continual improvement to the Smoothie Factory franchise system, stores, and overall brand image • Flexible store formats, including the “Minifactory” which allows stores to be placed in food courts and other small spaces • A long and successful history with strategic plans for growth – in business since 1996 and franchising since 1997
• A high-quality product line made with real, fresh fruit – no concentrates, syrups or purees
• Outstanding franchisee training and support
• Not just a smoothie franchise – it’s like owning a juice bar,
Email: franchise@smoothiefactory.com.au
Website: www.smoothiefactory.com.au
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SNAP-ON TOOLS Snap-on Tools Australia & New Zealand is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers, and other professional tool users across the country. Snap-on Tools is a subsidiary of Snap-on Incorporated, a leading global innovator, manufacturer of tools, diagnostics and equipment solutions for professional technicians, with an
established network of franchise operations across the globe. After more than 25 years in the Australian market, Snap-on continues to perform, providing robust financial results for its network of over 170 franchisees. Extensive training and ongoing support is provided - no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.
SNOOZE®
• Vendor finance assistance
As one of Australia’s longest-running, most successful and innovative franchised business, Snooze’s experience in the bedding industry is second to none.
• NAB & ANZ accreditation
With over 78 stores nationwide and a commitment to continued growth and development, Snooze offers great return on investment.
• IT services
Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including:
SPRAY PAVE AUSTRALIA Pty Ltd Earn up to $3,300 per week. That’s right, up to $170,000 per year! Our service decorates concrete. We Spray Pave, Polish, Epoxy and Stain. Jobs are inside and outside. Customers are domestic, commercial and Government. Our license structure allows you to choose when, where and how you want to work! This is a sincere “Be Your Own Boss” system. You genuinely keep all the profits!
STEVE COSTI’S FAMOUS FISH Steve Costi and his family have been in the seafood business since 1958, and after years of success have decided to franchise the Famous Fish business. Consider these facts: • Seafood consumption in Australia has increased by 27% per capita since 1997 • Of the 30,000+ take-away venues, generating in excess of $7 billion in retail sales, there are no multiunit, integrated seafood operations • Fish & Chips remains the #1 take-away food item sold by independent take-aways in Australia
business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
104 Business Franchise Australia and New Zealand
• Sales and product training • Business management support • A national marketing program To take the first step toward a prosperous future contact Bettina Davis on 0423 077 844 email: bettina.davis@snooze.com.au or visit www.snooze.com.au
• Learn a range of new lifelong trades. • Guaranteed work available anytime after training. • Head office training plus follow-up on your own job. • Customers contract and interest free finance. • Lifelong support from 6 Head Office trainers. • From $7,000 deposit + Support Payment Plan. Established in 1991, Security with Australia’s largest and oldest network. The name of the industry. Phone or email now, for a FREE information pack: FREE CALL 1800 688 888 Website: www.spraypave.com
• Consumption of seafood by Australians under 20, increases at double the rate of meat and dairy, annually Coupled with the strength of the Costi Brand, our franchisees will benefit from our comprehensive training, business, marketing and head office support. Set sail in one of Australia’s most successful retail sectors! For more information regarding the Famous Fish Franchise opportunity, please contact Sal El-Houli: P: 0425 786584 E: franchising@famousfish.com.au W: www.famousfish.com.au
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
THE INTERFACE FINANCIAL GROUP - IFG 50/50 The Interface Financial Group franchisees provide shortterm working capital for small businesses by purchasing their invoices at a discount. In the current economic climate small businesses need working capital but banks are unwilling or unable to provide it. Many of these small businesses are turning to Interface for a solution. Interface has been in the ‘invoice discounting’ business since 1972, is the leading alternative funding source for
Theobroma Lounges, Pavilions, Bars The earliest record of chocolate was over two thousand years ago in the central American rainforest where the tropics is the ideal climate for the cultivation of the plant from which chocolate is derived, the Cacao Tree, Latin name “Theobroma Cacao” or “Food of the Gods”
business, and employs its franchise network in Australia, New Zealand, Canada, the Republic of Ireland, Singapore, the United Kingdom, the United States, Mexico and South Africa. The new IFG 50/50 franchise offers the opportunity to get started quickly and with a more modest capital base. Why? Because we syndicate all transactions with our franchisees 50/50. Franchisees do the ‘people work’ - we do the ‘paperwork’ – a great combination to achieve an aboveaverage return. For more information: ifg@interfacefinancial.com www.interfacefinancial.com.au
Our franchise offers: • Innovative and unique concept that includes all of life’s pleasures- chocolate, coffee, food, alcohol and retail • Highest quality chocolate products. • Full training provided.
The concept was developed in response to the spiraling demand of high quality chocolate and chocolate beverages with the added enhancement of a full food menu, with some stores even offering a licensed venue.
• Professional support team with a range of skills to assist you.
Thermawood
Become part of the success story with:
Thermawood Retro-Fit Double Glazing System is designed to retro-fit double glazing into existing wooden windows. Proven systems and processes with the Thermawood Patented drainage system.
• Full Training and ongoing support • Strong industry Growth • Full Advertising & Marketing • Patented product new to the Australian Building industry. We are looking for passionate self-motivated people to join the Thermawood team.
With new stores opening in countries across the globe, be part of something special.
Retro-Fitting fitting double glazing into existing wooden windows allows the home owner to retain the character of their windows, be more energy efficient, reduce energy costs and reduce noise.
Please contact Thermawood Retro-Fit Double Glazing for more information.
Along with installing double glazing Thermawood installers also fit draft/sound seals to all types of windows including double hung windows, casement windows and doors.
Info@thermawood.com.au www.thermawood.com.au 0455 555 330
Top snap
Photography, Drone Photography, Property Videos, 3D Home Scanning, Virtual Home Furnishings, Floor Plans and much more.
Top Snap specialises in Real Estate Photography Marketing in Australia and New Zealand for over a decade. With the emergence of new and innovative technologies Property Marketing has never been this exciting!
Sounds interesting? Contact us today and let’s have a chat.
Build your own business with Real Estate
Call 1300 TOP SNAP Email franchise@topsnap.com Web www.topsnap.com
V.I.P. Home Services
• Unparalleled national, state and local support
V.I.P. was the first company to start franchising in home services in 1979.
• Proven marketing, products and systems
V.I.P. has over 1100 franchisees across Australia and New Zealand. As Australia’s oldest and most experienced Home Services Franchisor, multi-award winning V.I.P. has helped over 4,000 just like you to become successful business owners in cleaning, lawn mowing and gardening by providing: • Industry leading training, coaching and mentoring
• Affordable franchise options • Everything you need to start a great new life and ‘love your work’ Phone: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.viphomeservices.com.au
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V.I.P. Home Services fencing & home maintenance
Regional (Master) Opportunities now available in Sydney, Adelaide, Tasmania and Brisbane.
V.I.P. Home Services – Fencing and Home Maintenance is a newly launched division that is part of the iconic V.I.P. Home Services group. We have the pleasure of offering you this unique opportunity!
Currently we are seeking suitable candidates to take up this excellent but limited opportunity that is available Australia wide, in Fencing & Home Maintenance. Husband and wife teams or business partners with integrity, energy and self-motivation should apply!
Affordable Franchise Opportunities NOW available in Melbourne and Victoria in Fencing or Home Maintenance.
For more information, contact Warren Smith:
• Initial training • Ongoing coaching and mentoring • Comprehensive Cloud based IT systems • National and local marketing • And much, much more
Mobile: 0402 898 555 E-mail: joinus@vipandfhm.com.au Website: www.vipfandhm.com.au/join
Vodafone Australia
commission model with multiple income streams, comprehensive training to get you started and ongoing support from a dedicated Partner Area Manager to help you grow a profitable and successful business. All this with no ongoing fees or royalties!
More than five million people across Australia share, play and do more on the Vodafone network. We’re about to get bigger and even better. We’re looking for new Vodafone Licensees to join us on the next phase of our journey. You’ll have an exclusive relationship with one of the world’s leading telco brands, be a part of a retail brand with over 315 Vodafone branded stores nationally – and enjoy all the benefits that come with it. Key features of the program include a generous
XPRESSO MOBILE CAFé Xpresso Mobile Cafés operate in areas nationally where there are little to no fixed location café options for the workforce in commercial and light industrial precincts. Partnering with Di Bella Coffee ensures the quality of our hot and cold beverage products is unequalled in the mobile café industry. Our customers enjoy frappés, energy drinks, chilled, bottled cold pressed coffee and food options such as gourmet sandwiches/wraps, salads as well as cookies and banana bread - all designed to complement the enjoyment of high quality specialty coffee products. Our innovative van fit-out uses new technology that no
zambrero
We currently have a number of existing and new store opportunities available in locations around Australia. Interested? Contact Frank Chang on 0414 803 811 or email dealer.recruitment@vodafone.com.au or visit www.vodafone.com.au/careers/select-dealerrecruitment
longer requires noisy/expensive generators but also ensures franchisees can display food and beverage items in a large display fridge and freezer. Franchisees are encouraged to source some food and beverage items from local wholesale suppliers rather than through the franchisor; this ensures increased net profit through reduced costs. Franchisees are supported nationally by both the franchisor and Di Bella Coffee as well as a fully integrated website, call centre, social media and Internet presence. We’re setting the benchmark for coffee vans – will you join us? Contact us TODAY for a detailed 2016 information pack: joinus@xpresso.com.au OR 1300 655 559
Zambrero is Mexican with a Mission. Started in Canberra in 2005 by Dr Sam Prince, Zambrero quickly grew to be Australia’s largest Mexican restaurant franchise with over 100 restaurants across every state in Australia and 13 restaurants globally.
more important is why we do it. We call it our Plate 4 Plate initiative. We don’t believe that anyone in this world should go hungry which is why for every burrito or bowl you purchase at Zambrero, a meal is donated to someone on need. Thanks to our customers and franchise partners we have donated over 8 million meals already and counting.
It’s easy to work out what we do and how we do it. We make Mexican food using fresh healthy ingredients that will leave you satisfied. What’s
We believe that together we can make a difference. If you would like to join the movement, contact us at www.zambrero.com
business franchise australia and new zealand
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
106 Business Franchise Australia and New Zealand
JEJAK GRAPHICS
a lasting impression
CREATIVE DESIGN SOLUTIONS
LEAVING A LASTING IMPRESSION Jejak Graphics is a freelance graphic design business based in Melbourne, Australia working with clients worldwide. With over 18 years experience in the design and print industry specialising in magazine layout and advert design as well as offering a number of other graphic design services and print solutions including: t $PSQPSBUF TUBUJPOFSZ t #SPDIVSFT BOE nZFST t 1PTUFS BOE CBOOFS EFTJHO t &EVDBUJPOBM NBOVBMT t 4QPSUT QSPHSBNT t .POUIMZ /FXTMFUUFST t 1SPEVDU MBCFMT BOE QBDLBHJOH Artwork is tailored to your brand and focused on your message and target BVEJFODF /P KPC JT UPP CJH PS TNBMM $POUBDU NF UPEBZ UP EJTDVTT IPX +FKBL (SBQIJDT DBO NBLF ZPVS DPNQBOZ or organisation leave ‘a lasting impression’.
P: 03 8790 8006 M: 04222 676 39 E: jejak@bigpond.com www.jejakgraphics.com.au
1 Year of T H E
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That’s right! One year (6 issues) of Business Franchise Australia and New Zealand for only $39.95 AUD or $52.95 NZD.
Packed with information relating to many different areas of the franchising industry, Business Franchise Australia and New Zealand is a valuable and informative source of guidance.
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Name:__________________________________________________________________________________ Address:________________________________________________________________________________ City:____________________________________________________________________________________ State:________________________________________ Postal Code:________________________________ Phone Number:___________________________________________________________________________ Email:___________________________________________________________________________________ Credit Card No._____________________________ CCV No: ________________ Exp. Date______________ Mail to: CGB Publishing Pty Ltd PO Box 968 Mt Eliza Victoria 3930 AUS Email: cgb@cgbpublishing.com.au Business Franchise Australia New Zealand 108108 108 Business Business Franchise Franchise Australia Australia andand and New New Zealand Zealand
JOIN THE
TEAM AT SNOOZE
Wake up to a fresh new career with Snooze. If you’ve always dreamed about owning your own business, becoming a Snooze Franchise Partner might be just what you’re looking for. Snooze is proudly owned by Steinhoff International, this means if you become a Snooze Franchise Partner you won’t just be joining one of Australia’s most successful bedding specialist retailers, you’ll enjoy the backing of a global organisation. Our tried and tested business model has seen our business grow to 78 stores nationally, combined with our training program, support and your winning attitude this could be the start of an exciting and new career path. Stop dreaming and enquire now about becoming a Snooze Franchise Partner.
Vendor Finance Available to Approved Applicants
It’s amazing what a little snooze can do. snooze.com.au
For more details visit snooze.com.au Or email Bettina Davis, Network Development Manager - bettina.davis@snooze.com.au
I’ve been a store manager at Hairhouse Warehouse for ďŹ ve years. Hairhouse Warehouse is now helping me to purchase my own store Melissa Sciberras Hairhouse Warehouse Mt Druitt
You don’t need to have hairdressing experience to join one of Australia’s largest and most lucrative retail brands. Plus there are ďŹ nancial incentives for ALL new stores.
WHAT SETS US APART FROM THE REST? Ä‘ A proven proďŹ table turnkey operation
Franchisees are able to own their piece of one of
Ä‘ĆŤ 1(0%,(!ĆŤ.!2!*1!ĆŤ/0.! )/ÄŒĆŤ%* (1 %*#ĆŤ.!0 %(ÄŒĆŤ
Australia’s largest retailers, and build their business
hair salon, piercing and beauty services
faster. So if you want to start achieving your goals,
Ä‘ĆŤ 40!*/%2!ĆŤ0. %*%*#ĆŤ * ĆŤ/1,,+.0ĆŤ".+)ĆŤ a dedicated team of professionals Ä‘ĆŤ 4 (1/%2!ĆŤ/0+ '%/0/ĆŤ+"ĆŤ3+.( ĆŤ(! %*#ĆŤ brands and the most lucrative
now is the time to join, with Hairhouse Warehouse offering attractive ďŹ nancial incentives for all new stores. Locations are available in all states and territories in Australia.
merchandising terms
CONTACT ĆŤ ĆŤ for a conďŹ dential discussion on 0451 370 060 hairhousefranchising.com.au
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